What is ENA?

Network: Ethereum
Category: Governance Token for Synthetic Stablecoin
Address: https://etherscan.io/token/0x57e114b691db790c35207b2e685d4a43181e6061

About ENA

ENA is the governance and utility token that powers Ethena, a decentralized finance (DeFi) protocol behind USDe—a synthetic dollar that maintains price stability without relying on banks or traditional fiat reserves.

Instead of being backed by cash or treasuries, Ethena uses ETH and/or LSTs (liquid staking tokens), like staked ETH, as collateral while opening short positions* in derivatives markets to hedge price volatility. This approach known as delta-neutral** strategy, allows users to mint and hold USDe—a fully on-chain dollar-like asset that stays close to 1 USD.

ENA supports this system by serving as a reward token, governance tool, and liquidity incentive within the protocol. Users who help maintain the stability of USDe and the overall protocol—by depositing ETH or LSTs as collateral or by participating in the Stability Module with stablecoins—receive ENA in return. This also gives them a voice in governance decisions, making ENA a key component of Ethena’s bankless stablecoin ecosystem.

Key Points of ENA

Synthetic Dollar Infrastructure: ENA supports USDe, a synthetic stablecoin that stays near $1 through a delta-neutral hedging strategy involving ETH and futures (financial contracts).

On-Chain Stability: Ethena removes reliance on fiat or banks, offering a fully crypto-native solution with transparent collateral and risk management.

Multi-Utility Token: ENA is used for governance, stability incentives, and ecosystem growth via rewards and liquidity programs.

FAQ

1. What is ENA used for?

ENA has several functions within the Ethena ecosystem:

Governance: ENA holders vote on updates and protocol changes.
Rewards: Users who provide stablecoins through the Stability Module receive ENA as incentives.
Growth: ENA is used in liquidity programs to drive adoption and ecosystem development.

2. How does Ethena work?

Ethena is a DeFi protocol that supports a bankless stablecoin called USDe. It works by neutralizing price volatility through a delta-neutral strategy:

Users deposit ETH or LSTs as collateral.
The protocol opens short positions in futures markets to hedge price movements.
These opposing forces cancel each other out, keeping USDe stable around $1.
Users can also deposit stablecoins into the Stability Module and earn ENA rewards.

Example:

Imagine Alex deposits 1 ETH into Ethena. At the same time, the protocol opens a short futures position on ETH.

If ETH's price rises, the futures lose value—but the ETH collateral gains.
If ETH's price falls, the futures gain—but the ETH collateral loses.

These opposite movements cancel each other out, helping keep the USDe value steady.

3. How can I buy ENA on Bitso?

Buying ENA on Bitso is easy:

Log in to your Bitso account and go to “Buy/Sell.”
Choose USDC as your base currency.
Select ENA as the token you want to buy.
Enter the amount, review the details, and confirm your purchase.

Important: Currently, ENA is only available for conversions in the main Bitso app. It is not supported on Bitso Alpha, and deposits and withdrawals to external wallets are currently disabled. However, you can send and receive ENA with other Bitso users using Bitso Transfer.

Disclaimer

This Help Center article is for informational purposes only and does not constitute investment advice. ENA is a decentralized token used to support Ethena’s synthetic stablecoin infrastructure. It is subject to market volatility and price fluctuations based on supply, demand, and community sentiment. Please conduct your own research (DYOR) and assess your risk tolerance before trading. As always, invest responsibly and stay informed.

*Position: A specific amount of a financial asset or contract held by someone—e.g. an option, which is a trade contract that gives you the right to buy or sell an asset at a set price.

**Delta-neutral strategy: a trading approach that aims to eliminate exposure to price movements in the underlying asset—so your overall position doesn’t gain or lose value when the market moves up or down.