The proposals by Ethena and Securitize will be assessed for suitability by the committee. If approved, this proposal will increase liquidity and stability within the Sky ecosystem. USDtb is backed by BlackRock’s BUIDL and offers a stable RWA-based risk profile.
Ethena Labs and tokenization platform Securitize have submitted a joint proposal to feature Ethena’s new stablecoin USDtb in Spark’s $1 Billion Tokenization Grand Prize.
$1 Billion Tokenization Grand Prize Contest Incorporates Real World Assets (RWA) into DeFi by Providing Liquidity to Selected Participants, Further Expanding the Range of Tokenized Assets in the Decentralized Ecosystem It is intended to.
Proposal submitted by Ethena and Securitize
At the heart of Ethena’s proposal is a unique swap facility between USDtb and its synthetic stablecoin USDe.
This innovation will enable participants in the Sky ecosystem (formerly MakerDAO) to dynamically manage liquidity and risk based on prevailing market conditions and interest rate trends. The ability to reallocate between these stablecoins is designed to enhance financial flexibility and stability within the ecosystem.
Ethena’s contribution to the Sky ecosystem is significant, with annual revenue of nearly $120 million. The USDtb consolidation could further strengthen USDe’s performance, especially in tough funding conditions, by dynamically adjusting the backing structure.
Scheduled to launch next week, USDtb is backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), a U.S. Treasury fund tokenized on the Ethereum blockchain. With over $533 million in tokenized assets under management, BUIDL provides a solid foundation for USDtb and a different risk profile than USDe.
USDe employs a derivative hedging strategy and is subject to fluctuations in the crypto market, while USDtb leverages traditional financial instruments, providing a more conservative option.
The proposal will be evaluated by a committee that includes Phoenix Labs and Steakhouse Financial using criteria such as liquidity, price competitiveness and alignment with Spark’s strategic objectives. Ultimately, Sky token holders will decide on the final selection through governance voting.
