Ethena proposes new fee switch activation milestones via governance.
DeFi & Yields ·
Ethena's governance proposal establishes a tiered fee switch mechanism that activates buybacks of ENA tokens as USDe stablecoin supply grows, beginning at $7.5B in supply with rates rising to 20 percent at $20B. Backtesting across 705 days of protocol data shows the mechanism would generate $52.7M annually at current conditions, representing a 3.36 percent buyback yield on ENA's $1.57B market capitalization. The fee is sourced proportionally from three existing revenue streams—sUSDe staking distributions, partner payouts, and Aave leverage rewards—with USDe supply currently at $4.07B, meaning no fees would be collected under the proposed schedule at present levels.