Ethena Labs secures a fresh $14 million in funding to bolster its Ethereum-based synthetic dollar project, following an initial $6 million investment in 2023 from investors like Binance Labs and Gemini.

The startup aims to advance the DeFi ecosystem through innovative financial instruments tied to the U.S. dollar.

Dragonfly and other venture capitals contributed to the recent funding round announced on Feb. 16.

The funds will support the development of USDe, a synthetic dollar backed by delta-hedging strategies and collateralised with staked Ether (ETH), which has amassed $200 million in total value locked since its December launch, signaling growing interest in stable digital currencies and highlighting Ethena Labs' significance in the DeFi landscape.