Ethena today announced the launch of Converge, a new educational Layer-1 blockchain. This new platform would be a significant new infrastructure to bridge decentralized finance (DeFi) with real-world assets (RWAs). As far as development, Converge is preparing for a mainnet launch in Q2 of this year. They are excited to introduce a decentralized framework to cater to the rising demand for tokenized real-world assets (RWAs). Everything on the new blockchain is built around getting the highest transaction speed possible and optimizing user experience. It boasts complete compatibility with the Ethereum Virtual Machine (EVM), meaning you can onboard existing Ethereum-based DeFi applications effortlessly. Converge will use Ethena’s stablecoins, USDe and USDtb, as gas tokens for transactions across the chain, simplifying operations within its ecosystem.
Converge's Technical Specifications
Converge is designed for turbocharged race pace! It promises better transaction speeds and dynamic user experience, all of which mitigate the added complexities that come with tokenizing RWAs. Converge is developed with full EVM compatibility, making it developer-friendly. For developers, they’ll be able to easily port their current Ethereum-based DeFi apps over to the new blockchain with little changes. This compatibility opens up the value and functionality of tried-and-true DeFi tools and protocols to the RWA space — driving innovation and collaboration with them.
Ethena very strategically decided to make their USDe stablecoin (their main stablecoin) and their other stablecoin, USDtb, gas tokens on Converge. This is a monumental decision fostering the adoption and utility of its native digital assets. Ethena is building stablecoins directly into its transactional framework. This new methodology is all about creating a more open, interoperable and intuitive ecosystem for users and developers alike. This approach helps simplify how to do business on the Converge network. For one, it greatly removes friction and vastly improves the user experience for everyone using its app.
Validator Network and Security Measures
To ensure the stability and security of the network, Converge will be governed by a Validator Network (CVN) with discretionary powers. This network will have the ability to really move the needle in emergency situations. Third, it will further ensure user assets are protected and the integrity of the blockchain is maintained. Validator nodes within the CVN will be required to stake Ethena's native governance token, ENA, as a commitment to the network's well-being and to incentivize active participation.
Through its discretionary authorities the CVN can act as a safety net against unexpected vulnerabilities and nefarious intent. Ethena is committed to building a robust and resistant blockchain ecosystem. They do this by allowing the network to proactively react to networks under attack. The new staking mechanism ensures that validators’ interests are aligned with the long-term health of the Converge network. Developing the strategy by this approach encourages an open, collaborative and most importantly, a safe ecosystem.
Strategic Partnerships and Future Vision
Converge is a foundational layer in the long continued and wildly necessary merger of traditional finance and DeFi. It intends to underwrite on-chain deployment of whitelabeled products of its own, such as BlackRock’s BUIDL money market fund. Ethena is doing its part to realize this vision by partnering with RWA platform Securitize. Together, they are working to create tokenized traditional finance instruments to more seamlessly flow into the Converge ecosystem. Converge’s ambition goes deeper with a bold cross-chain vision. Palette will support assets across on and offchain blockchain ecosystems such as Ethereum, Solana and Arbitrum with bridging, unlocking interoperability and connectivity in the expanding digital asset landscape.
Ethena’s partnership with Securitize is a strategic move to harness our collective blockchain and DeFi expertise to drive RWA adoption to the tokenized RWAs across the broader DeFi space. Converge leverages Securitize’s vast experience in tokenizing traditional assets. Through this strategy, users can unlock a rich universe of investment opportunities. Ethena is dedicated to creating the most connected and interoperable financial ecosystem. The intended support for all of the top blockchain ecosystems shows that commitment, allowing assets to move easily between blockchain platforms and networks.
