Ethena Labs' synthetic dollar, the USDe stablecoin, has quickly reached a $3 billion supply just four months after its launch. This milestone is the fastest ever for a USD asset, according to the protocol's founder.

USDe maintains its value through arbitrage and yield-earning cash-and-carry trades. Launched publicly in February, it has now grown to $3 billion in tokens. Since April 5, the supply increased by $1 billion, positioning USDe to potentially overtake DAI as the largest decentralized or algorithmic stablecoin, though it needs another $2 billion to do so.

Currently, USDe ranks fourth in total stablecoin supply, with a 3.3% market share, much smaller than Tether’s dominant 57%. Comparisons have been made to Terraform Lab’s UST stablecoin, but USDe operates differently, generating yield from cash-and-carry trades and staking profits shared among holders. Recently, Bybit added USDe for spot trading with Ethereum and Bitcoin.

In April, USDe began airdropping its governance token, ENA. Initially, ENA reached an all-time high of $1.52, but its market capitalization is now $1.3 billion, with the token priced at around $0.91.