As the largest AMM perpdex currently, @JupiterExchange's JLP contains 796M in stablecoins, all of which are USDC, and this portion of stablecoins has a very high utilization rate, consistently over 62% being borrowed for long positions on Jup.
Now it's different, as it will all be JupUSD, which is issued by Jupiter through @ethena_labs. This means that this portion can be fully utilized internally, and the technology is mature with basically no risk.
The buyback capability of JUP may strengthen, or JLP users may gain an additional income, and the moat of ENA is getting deeper.
The boss of Ethena mentioned in a meeting before that the competitor is USDC, and he indeed has full execution power; this business has directly turned into a SaaS model, meaning that in the future, projects like Drift, GMX, and many others can all use this to replace USDC... it's quite aggressive.
Introducing JupUSD: the native stablecoin of the @JupiterExchange ecosystem built on Ethena's Stablecoin-as-a-Service stack.
JupUSD will plug into every major part of the Jupiter stack, including:
- Jupiter Perps: where the ~$750m in stablecoins inside of JLP will gradually be replaced by JupUSD
- Jupiter Lend as the cornerstone lending asset
Excited to be partnering with one of the best teams on Solana.
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