Introducing USDe Margin for Bitget Coin-Margined Futures

Bitget has successfully integrated Ethena Labs' synthetic dollar, USDe, as margin for coin-margined futures! With the SEC's approval of Bitcoin and Ethereum ETFs, interest in new financial tools is growing. As a leading cryptocurrency exchange, Bitget is committed to providing an exceptional trading experience and stays ahead of industry trends by recognizing the potential of USDe. Like USDT, USDe is expected to be highly competitive in the market. By enabling USDe as margin in coin-margined futures, Bitget meets the demand for more versatile financial tools, allowing users to manage and grow their portfolios in innovative ways.

Bitget Coin-Margined Futures

Bitget's coin-margined futures are futures trading products quoted and settled in cryptocurrency. This kind of futures trading supports multiple cryptocurrencies as margin for trading pairs. Also known as inverse futures, this type of trading allows investors to directly use cryptocurrencies to participate in the market without converting their coins into stablecoins and potentially missing out on price increases.

For example, by using BTC as margin, you can leverage trade BTCUSD, ETHUSD, and EOSUSD, with profits and losses calculated in BTC. This method offers more trading options and allows you to use leverage to open positions.

What is USDe?

USDe is a new type of stablecoin developed by Ethena (ENA) on the Ethereum blockchain. Unlike traditional stablecoins like USDC or USDT, USDe is not pegged to fiat currencies. Instead, it is a synthetic dollar collateralized with crypto assets and short futures positions. This unique approach enables Ethena to provide a censorship-resistant, scalable, and stable form of digital money.

The world of cryptocurrency has long been in need of a decentralized base money asset that is not reliant on traditional banking infrastructure. While stablecoins have emerged as a crucial financial instrument within the crypto ecosystem, they still remain tied to centralized systems, posing risks such as custodial failures and regulatory challenges.

USDe effectively addresses these issues. It is censorship-resistant and does not depend on traditional banking infrastructure. The stability of USDe is ensured through a mechanism known as delta hedging, which involves offsetting the price change risk of the collateral assets with corresponding short futures positions.

New Feature: Using USDe as Margin in Bitget Coin-Margined Futures

Bitget has now become a leading cryptocurrency derivatives trading platform with various innovative products. Among these, Bitget's coin-margined futures is a unique product designed specifically for cryptocurrency enthusiasts. To provide a better user trading experience, Bitget has further enhanced its margin options, allowing users to use USDe as margin for futures trading.

With this new feature, users can simultaneously hold long and short positions in BTC, ETH, and other crypto-margined futures. If users choose USDe as margin, they can settle profits and losses in USDe. If users choose other cryptocurrencies as margin, profits and losses will be settled in that cryptocurrency.

For example, a user trading BTCUSD coin-margined futures on Bitget is bullish on BTC and buys a BTC long futures contract at $60,000. They need to deposit a margin in USDe, let's say 1,000 USDe ($1,000). If BTC's price rises to $70,000 before expiration, the user will gain a total profit of $10,000, calculated in USDe.

Conversely, if BTC's price drops to $50,000 before expiration, the user will incur a loss of $10,000, also calculated in USDe. If the user's margin level falls below the required maintenance margin level, they may be required to add more USDe to their margin account to maintain the required level, and avoid being liquidated.

Advantages of Using USDe as Margin in Bitget Coin-Margined Futures

Using USDe as margin offers several benefits, including:

Diversified Trading Strategies: Provides traders with greater flexibility and variety by offering another collateral option. It helps manage risks more effectively and offers a more efficient way to trade collateralized assets, especially beneficial for traders exploring trading strategies beyond holding and staking.

Improved Capital Efficiency: Better optimization of asset allocation.

Stable and Convenient Trading Experience: Provides a more stable and convenient trading experience for users.

Guide on Trading with USDe

To trade futures with USDe as margin, you first need to transfer USDe from your Bitget spot account to your coin-margined futures account. Internal transfers within Bitget are fee-free.

Here are the steps to trade with USDe as margin in Bitget Coin-Margined Futures (using the Bitget app as an example):

Step 1 - Log in to the Bitget trading platform.

Step 2- Transfer USDe: Transfer USDe to your Bitget coin-margined account.

Step 3 - Enter Futures Coin-M page: Tap on the Futures button at the main navigation bar, and select the Coin-M tab.

Step 4 - Choose a trading pair: Select the trading pair you want to trade, such as BTCUSD.

Step 5 - Choose the margin: Tap on the Margin BTC button, and select USDe as your margin.

Step 6 - Set leverage: Based on your risk tolerance and trading strategy, set the appropriate leverage. Note that higher leverage increases the risk of profit and loss.

Step 7 - Place orders: Based on your market analysis and trading strategy, choose to buy or sell. You can choose market orders, limit orders, or other types of orders.

Step 8 - Monitor positions and market trends: During trading, closely monitor your positions and market trends. You can set stop-loss and take-profit orders to control risks and protect profits.

Step 9 - Close positions: When your trade reaches the expected profit or incurs a loss, choose to close the position. You can choose market close or limit close.

By following these steps, you can effectively use USDe as margin for coin-margined futures on Bitget.