Ethereal Exchange proposes integration with Athena Network

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Ethereal Exchange has submitted a proposal to Athena governance seeking community approval to launch a new spot and perpetual exchange built on USDe and integrated into Athena’s hedging and liquidity engine.

A new proposal was made on Ethena governance a few hours ago

Ethereal Exchange is requesting the community approval to launch a new spot and perpetual exchange built on USDe and integrated into the Ethena hedging engine and liquidity

Their proposal includes a 15% commitment of…

— Ethena Labs (@ethena_labs) September 30, 2024

The proposal introduces Ethereal as an integrated decentralized spot and perpetual futures exchange (DEX) built on the future Athena network using USDe. Ethereal calls for direct integration into Ethena-related reserve management from launch to provide a complete onchain place for managing spot and derivative positions backing USDe.

As part of the proposal, Ethereal is offering a 15% allocation of any potential future Ethereal Governance Token to circulating ENA holders. This move aims to ensure alignment between Athena and Ethereal community stakeholders.

Ethereal V1, with a testnet expected in Q4, is designed as an L3 EVM application chain that deploys on the Athena network. The exchange aims to match the performance of the centralized exchange while maintaining full self-custody and the flexibility to support features such as cross-margin, liquidity automation and portfolio margin. Ethereal’s architecture is capable of processing 1 million operations per second with sub-20ms latency.

The proposal outlines several potential benefits for the Athena ecosystem, including increased demand for USDe, improved decentralization through onchain management of USDe support, and setting a precedent for other applications built using USDe on the Athena network.

Ethereal is seeking support from the Athena community for integration as a hedging venue, subject to satisfactory technical due diligence by the Athena Foundation and Risk Committee. Additionally, they are looking for technical support to deploy to the Athena network to implement an integration with the Athena coverage engine.

A snapshot for voting on the proposal is expected to be released soon, with community members encouraged to participate in the governance forum discussions.

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