Reya x Ethena Partnership: Higher Yield and Transparent Liquidity for Reya LPs

Simon Jones

• 3 min read
Reya x Ethena Partnership: Higher Yield and Transparent Liquidity for Reya LPs

We’re partnering with Ethena to upgrade Reya LP Pool (currently tokenised as srUSD) to significantly strengthen yield quality and improve transparency for Reya LPs. With this partnership, all the assets in the LP Pool on Reya will be held entirely in Ethena’s USDe/sUSDe.

What does it mean for Reya LPs


Ethena has built the most compelling risk-adjusted, reward-bearing digital dollar available today, backed by a track record of disciplined risk management and robust transparency. Moving the Reya LP pool into USDe/sUSDe gives LPs on Reya additional yield and full confidence in the way yield is generated.

As Reya’s LP pool already earns market-making returns, now depositors will receive two sources of yield: Reya’s market-making yield plus additional yield in the form of Ethena’s sUSDe.

Our partnership with Ethena is a major step forward in aligning Reya’s liquidity with the most transparent and robust yield infrastructure in crypto. By integrating USDe and sUSDe into the LP Pool, we’re not only improving yield quality and transparency for Reya LPs, but also setting a new standard for LP capital efficiency.” - Simon Jones, CEO of Reya Labs

We are excited to see Reya adopting USDe and sUSDe as the foundation of its trading liquidity. One of USDe's most potent use cases so far has been as trading collateral on CEXes like Binance and Bybit. We are excited to see this same functionality translate to highly-performant on-chain venues like Reya." Guy Young, CEO of Ethena Labs


How does It work?

You can become a Reya LP by depositing USDC at on the Reya dApp. Once deposited, your funds will automatically be allocated to the liquidity pool. All funds in the liquidity pool are allocated uniformly, and after this change:

  • the pool converts USDC into (s)USDe
  • and uses the resulting (s)USDe as margin for providing liquidity on the AMM (and in the future on the orderbook)

The pool then accrues:

  • Ethena’s sUSDe rewards
  • returns from Reya’s market-making
  • a share of all trade and liquidation fees
  • Reya Chain Points

These returns are shared equally among all LPs without preferential groups.


What are the next steps for Reya?


There are two important steps in our collaboration with Ethena:

We are improving the current Liquidity Manager (LM) framework to refocus it on Reya market-making

Currently, the market-making component of Reya comes from the AMM. But as Reya transitions into the based-rollup architecture, all trading activity on Reya will move onto a low-latency, hyper-scalable orderbook. Hence, the pool’s assets will be deployed by designated market makers providing liquidity directly on the orderbook.The current LM framework will adjust to support this and will be announced ahead of the orderbook launch.2. (s)rUSD will be renamed to more clearly reflect its structureWe’ve received feedback about the naming of rUSD and srUSD, and the confusion it can create regarding what each asset represents.In the current naming:

  • rUSD is simply wrapped USDC, always 1:1 backed by USDC
  • srUSD is the staked version of rUSD, representing the LP Pool and its returns

We are simplifying the naming to ensure transparency around risk profiles and sources of yield, with the new names:

  • rUSD → USDC
  • srUSD → RLP (tokenised ownership of Reya LP)

These changes make the system clearer for Reya users, more transparent from a risk perspective, and better aligned with Reya’s transition into the based-rollup architecture.

Why does it matter?

Why does it matter?
Partnership with Ethena not only brings additional yield to Reya LPs, but it is also done with a partner that shares the same values as Reya on transparency, professionalism, and resilience.As the network upgrades into its based-rollup architecture, users can expect steady improvements in the yield quality, along with a market-leading trading experience for onchain users and institutions.

Immediate next steps:A governance proposal will be made to the Reya DAO reflecting the above partnership ahead of a vote. If approved, a designated Market Maker will be instructed to start swapping Reya LP Pool assets into USDe/sUSDe. Only after this process is complete will srUSD be renamed to RLP. rUSD will be renamed immediately to USDC to avoid any confusion.