Ethena Labs has proposed to include its upcoming stablecoin, USDtb, in Spark’s $1 billion Tokenization Grand Prix, a competition aimed at onboarding real-world assets to decentralized finance by providing liquidity to selected projects. Ethena and Securitize's joint proposal includes a swap facility for USDtb and another stablecoin, USDe, allowing for management and reallocation in response to market conditions. A review panel will evaluate applications based on pricing, liquidity, and alignment with Spark’s goals, with final decisions made through a governance vote by Sky tokenholders. USDtb, set to launch next week, is backed by BlackRock’s USD Institutional Digital Liquidity Fund, which holds substantial tokenized assets. Ethena aims to leverage USDtb to enhance the performance of USDe during weak funding conditions, dynamically adjusting its backing composition to mitigate risks associated with negative funding rates. Ethena's USDe currently holds a market value of over $4.3 billion, showcasing growing interest in its ecosystem following the proposal to activate revenue sharing for its tokenholders.

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