Deniz 
The Ethena Community is debating a new proposal to have a distributed exchange called Ethereal directly included in Ethena-related reserve management to serve as the completely onchain venue for spot and derivative positions supporting USDe. The plan calls for the DEX constructed on the forthcoming Ethena Network.
“We are requesting support from the Ethena community for an integration with Ethereal as a venue for executing hedging transactions,” said the proposal, also requesting technical support for Ethereal’s connection with Ethena’s hedging engine.
Written by “Fells0x,” most likely a staff member of Ethereal, the proposal said that the integration would have mutual benefits whereby the exchange could provide USDe with a fresh source of demand as well as increased transparency as USDe backing management would be conducted on-chain. Furthermore, suggested by the Ethereal team was giving Ethena (NA) token holders 15% of any possible Ethereal governance tokens.
Ethereal is supposed to premiere on Testnet in the fourth quarter of this year. The DEX is supposed to process one million operations per second with sub-20 ms latency, according to the proposal. “Ethereal is designed to match centralized exchange performance while maintaining complete self-custody and flexibility to support features such as cross-margin, liquidity automation, and portfolio margin,” the proposal said.
Ethena Labs responded to the suggestion by writing on X that it would “shortly” publish a snapshot for voting on it; no precise timeframe has been stated. Ethena revealed last week its strategy to introduce a new stablecoin in association with the real-world asset tokenizing tool Securitize. BlackRock’s tokenized U.S. Treasury fund BUIDL will underlie the stablecoin, UStb.
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