Ethereal Exchange has officially submitted a proposal to Ethena governance, seeking community approval for the launch of a new decentralized exchange (DEX) that combines spot and perpetual trading. This initiative aims to leverage USDe, the native stablecoin of the Ethena ecosystem, and integrate seamlessly with the Ethena hedging engine and liquidity management systems.
The proposed DEX, named Ethereal, is designed as an integrated platform for trading both spot and perpetual futures. It will be built on the forthcoming Ethena Network, utilizing USDe to provide a fully on-chain solution for managing both spot and derivative positions. Ethereal's launch aims to enhance reserve management capabilities within the Ethena ecosystem, offering users a robust environment for their trading activities.
In a bid to align the interests of the Ethena and Ethereal communities, the proposal includes a noteworthy offer: a 15% allocation of any future Ethereal governance tokens will be granted to holders of the circulating ENA token. This initiative is intended to foster cooperation and mutual benefits between the two communities.
Ethereal V1 is poised for a testnet release in Q4 and is designed as a Layer 3 Ethereum Virtual Machine (EVM) appchain that settles transactions on the Ethena Network. The exchange is engineered to deliver performance comparable to centralized exchanges while ensuring users maintain complete self-custody over their assets. Ethereal plans to support advanced trading features such as cross-margin, liquidity automation, and portfolio margin, backed by an architecture capable of processing up to 1 million operations per second with latency under 20 milliseconds.
The proposal outlines several potential advantages for the Ethena ecosystem, including increased demand for USDe, enhanced decentralization through on-chain management of USDe backing, and setting a precedent for future applications utilizing USDe on the Ethena Network. Ethereal is advocating for its platform to be recognized as a key venue for executing hedging transactions, contingent upon successful technical due diligence conducted by the Ethena Foundation and Risk Committee.
To facilitate a smooth deployment, Ethereal is also seeking technical support from the Ethena community to integrate with the Ethena hedging engine. A snapshot for community voting on the proposal is expected to be released soon, with members encouraged to engage in discussions on the governance forum.
As the proposal moves forward, the Ethena community will play a pivotal role in shaping the future of trading on the network. Ethereal's innovative approach may significantly enhance the trading experience while bolstering the overall functionality of the Ethena ecosystem.
September 2024, Cryptoniteuae