Ethena Proposes Fee Switch to Trigger ENA Buybacks Based on USDe Supply

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ENA
$0.14760.33%
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USDe
$0.9999-0.01%
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AAVE
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Ethena proposes a fee switch mechanism based on on-chain data, adjusting income allocation according to the 14-day average supply of USDe. The plan increases revenue extraction ratios at $7.5B, $10B, $15B, and $20B thresholds, redirecting funds toward ENA buybacks. On-chain analysis suggests this could generate $52.7M in annualized buybacks, or 3.36% of ENA’s market cap. The Ethena Foundation also announced four ecosystem adjustments, including a governance proposal for buybacks and the cancellation of monthly VC unlocks.

ChainCatcher reports that Messari researcher anastasiia posted that Ethena’s new fee switch will be triggered based on the 14-day average supply of USDe, progressively increasing the revenue capture rate at thresholds of $7.5 billion, $10 billion, $15 billion, and $20 billion. A portion of revenue previously allocated to sUSDe staking, partners, and Aave leveraged lending will be redirected toward ENA buybacks. Backtesting shows that during activation periods, the annualized buyback volume amounts to approximately $52.7 million, equivalent to 3.36% of ENA’s market value at reported prices; additionally, on about 9.3% of activation days, sUSDe yields would fall below those of sUSDS. The Ethena Foundation has announced four ecosystem adjustments, including launching a governance proposal for ENA buybacks and eliminating monthly VC unlocks.

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