Wintermute has proposed a new revenue distribution model for the Ethena protocol aimed at aligning revenue with sENA token holders.
Wintermute’s Fee Switch Proposal
According to Wintermute, sENA holders — those who have staked their Ethena tokens — do not benefit directly from Ethena’s revenue growth despite the protocol’s success with the USD-pegged stablecoin, USDe. The latest proposal, submitted to the Risk Committee, suggests enabling a future revenue allocation to sENA to align token holders with Ethena’s financial performance. While the proposal refrained from providing specific figures for revenue allocation or a detailed fee-switch model, Wintermute recommended Ethena focus on establishing the "optimal form" for the fee switch, especially considering the growth of USDe’s supply and yield competitiveness for staked assets.
Ethena’s USDe
Ethena is a synthetic dollar protocol on Ethereum that issues the stablecoin USDe, designed as a scalable and censorship-resistant digital currency pegged to the USD. This year USDe has gained traction, offering yields up to 17%, which has prompted comparisons to Terraform Labs’ UST, the controversial algorithmic stablecoin that collapsed two years ago and sparked a broader crypto crisis. However, market experts assure that USDe’s yield mechanism is "unique."
Significance of the Proposal
Wintermute suggests setting a roadmap with clear milestones — like circulation and revenue targets — before implementing revenue-sharing. To support this, they request full disclosure from Ethena Foundation on how protocol revenue is currently and will be distributed. Any final decision on the proposed changes would require approval through a vote by ENA and sENA holders.
If the proposal is approved, it could reshape Ethena’s revenue structure, providing better benefits for sENA holders and supporting sustainable protocol growth.
