Ethena Launches Neobank on Avalanche
400 users in 49 countries get 5% savings rewards and 4% cashback with Ethena Pay app
Ethena has launched a neobank app called Ethena Pay on the Avalanche blockchain, offering users a self-custodial money app with savings rewards, global transfers, and card spending. The app is initially available to 400 users across 49 countries.
The app offers tiered rewards, with standard users earning 5% on up to $5,000 with 4% cashback. Pro and VIP users can earn 6% yields with higher balance limits and up to 5% cashback. Cashback is paid in AVAX, the native cryptocurrency of the Avalanche blockchain.
To unlock Pro and VIP tiers, users can either lock a certain amount of ENA, Ethena's native token, or refer a certain number of users. Specifically, users can unlock Pro by locking $2,000 of ENA or referring 10 users, while VIP requires $10,000 of ENA or 50 referrals.
## What's Next The app will be expanded to the U.S., EU, U.K., and Canada later, according to Ethena's plans. This expansion will likely increase the user base and provide more opportunities for users to utilize the app's features.
## Why it Matters The launch of Ethena Pay is significant because it provides a consumer distribution layer for USDe, a stablecoin, while creating another use for ENA. This move is part of Ethena's efforts to expand its ecosystem and provide more utility for its users. The app's self-custodial nature and rewards system may also attract users who are looking for a more decentralized and rewarding banking experience.
The launch of Ethena Pay follows several ENA-focused changes, including investor lockup restructuring, a proposed ENA buyback mechanism, and plans to expand USDe's basis trade into equity perps. These changes suggest that Ethena is actively working to develop its ecosystem and provide more value to its users.
