{"id":98023,"date":"2024-10-28T08:20:00","date_gmt":"2024-10-28T12:20:00","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=98023"},"modified":"2024-10-28T08:20:05","modified_gmt":"2024-10-28T12:20:05","slug":"ethena-team-accused-of-misusing-180m-ena-tokens","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/ethena-team-accused-of-misusing-180m-ena-tokens\/","title":{"rendered":"Ethena Labs Team Accused of Misusing 180M ENA Tokens"},"content":{"rendered":"\n

Ethena Labs is currently under investigation due to allegations that it unjustly staked 180 million ENA tokens in its crypto farming event<\/a>.<\/p>\n\n\n\n

\"Ethena
Ethena Labs Team accused of Misusing 180M ENA Tokens <\/em><\/figcaption><\/figure>\n\n\n\n

Ethena Labs\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>, a synthetic dollar protocol based on Ethereum, has been accused of participating in a crypto-farming event that it recently hosted, using 180 million Ethena tokens.<\/p>\n\n\n\n

The Ethena Labs team allegedly owns 25% of the total staked ENA (SENA) in its Season 3 farming event, which is actively used for farming Sats. Sats are rewarded to users for participating in various actions in the Ethena ecosystem. Crypto investigator Nomad reported this information on October 27.<\/p>\n\n\n\n

Nomad cautioned that the move would considerably diminish the rewards of legitimate participants, particularly Ethens Ethena USDe (USDE) holders while questioning the team's ethics.<\/p>\n\n\n\n

\n

Alert: Important Notice for ENA\/USDe Holders

The Ethena team is currently using 180M ENA tokens (25% of SENA supply that earns sats) to farm sats in Season 3, effectively diluting other participants' rewards. This raises significant concerns about the team's ethics.

A thread<\/p>— Nomad (@Nomad02887202) October 27, 2024<\/use><\/svg><\/span><\/a><\/blockquote>

Ethena did not immediately respond to Cointelegraph's request for comment regarding the allegations. Nevertheless, the protocol refuted the accusations of misconduct.<\/p>\n\n\n\n

Six wallets in question are affiliated with Ethena Labs<\/strong><\/h3>\n\n\n\n

In August, the Coinbase Prime Custody address received more than 3 billion ENA tokens<\/a>, which were potentially secured for the Ethena Labs core team and the Ethena Foundation, according to Nomad.<\/p>\n\n\n\n

Following the SENA staking launch in September, 180 million ENA tokens were transferred to six crypto wallets associated with Ethena from the Coinbase Prime Custody address in October. The Ethena leaderboard for Sat's farming has featured all six currencies.<\/p>\n\n\n\n

\n

https:\/\/t.co\/XVwTi7Fynu<\/use><\/svg><\/span><\/a>

Ethena sats leaderboard shows

0xB6dcCA1e6F3aB04B899cBf30cFcE22E6F9272C9F ranks 17th with 33.6B sats

0xC4bf1D0e09c400891ed780652b75b93fEE2c704e ranks 20th with 32.2B sats

0x1cF0Bc14FB1f9d0a3620d99bAA624944634d8AA5 ranks 24th with 28.8B sats\u2026<\/p>— Nomad (@Nomad02887202) October 27, 2024<\/use><\/svg><\/span><\/a><\/blockquote>

In addition to Sat's farming, ethereal (ETRL) rewards were also obtained by wallets with potential connections to the Ethena team.<\/p>\n\n\n\n

The investigators alleged the Ethena team's 180 million staked ENA tokens to have accrued 20% of all Ethereal points dedicated to its community members.
Nomad also underscored the significance of trust in the context of centralized finance entities:<\/p>\n\n\n\n

\n

\u201cNo one really knows how much funding revenue and staking revenue Ethena is generating from the $2.6 billion user fund or if it\u2019s streaming all revenue to SUSDe holders.\u201d<\/p>\n<\/blockquote>\n\n\n\n

Previous staking events resulted in losses for Ethena users<\/strong><\/h3>\n\n\n\n

Additionally, the investigator identified inconsistencies in the agricultural events that Ethena had previously hosted during Seasons 1 and 2, which had a detrimental effect on its users, mainly regarding financial losses.<\/p>\n\n\n\n

The accusations against Ethena Labs piqued the interest of crypto community members on X, and a significant number of them encouraged the protocol to respond.<\/p>\n\n\n\n

The deposited ENA in question is unlocked foundation tokens that are eligible for participation, according to Ethena. Additionally, the protocol will offer additional clarification to refute the allegations.<\/p>\n\n\n\n

\n

We are aware of questions circulating in Discord and X as to whether investors or the Ethena team are earning Ethereal rewards via sENA using locked tokens.

We would like to categorically confirm to our community that absolutely no locked team or investor tokens are staked as\u2026 pic.twitter.com\/v5SxgDwCTp<\/use><\/svg><\/span><\/a><\/p>— Ethena Labs (@ethena_labs) October 28, 2024<\/use><\/svg><\/span><\/a><\/blockquote>

Wintermute<\/a>, an algorithmic trading firm, disclosed on October 25 that it would accept Ethena's USDe as margin collateral for over-the-counter (OTC) trading.<\/p>\n\n\n\n

Wintermute's clients can now post “USDe as collateral for options, [credit default swaps], forward, and spot trading” as a consequence of the partnership.<\/p>\n","protected":false},"excerpt":{"rendered":"

Ethena Labs is currently under investigation due to allegations that it unjustly staked 180 million ENA tokens in its crypto farming event. Ethena Labs , a synthetic dollar protocol based on Ethereum, has been accused of participating in a crypto-farming event that it recently hosted, using 180 million Ethena tokens. The Ethena Labs team allegedly […]<\/p>\n","protected":false},"author":59,"featured_media":71914,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[22543,18451,21166],"class_list":["post-98023","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-ena-token","tag-ethena-labs","tag-usde"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/02\/CA-1.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/98023","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=98023"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/98023\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/71914"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=98023"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=98023"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=98023"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}