Ethena USD (USDe) is the Ethena protocol’s on‑chain dollar stable asset, issued on Ethereum layer‑2s to provide low‑cost, fast dollar exposure within decentralized finance. USDe is created and maintained through protocol mechanisms that typically combine overcollateralized positions, liquidity pools, and economic incentives designed to preserve the 1:1 peg to the U.S. dollar. Holders can use USDe for swaps, lending, yield strategies, and as a settlement medium across DeFi applications. Like other synthetic stablecoins, USDe carries smart‑contract risk, collateral composition and liquidation risk, and potential peg deviations during extreme market stress; governance and integrations continue to evolve.