Ethena Pay beta launches on Avalanche with tiered rewards up to 6%

Ethena has launched the beta version of Ethena Pay, a self-custodial iOS app that uses the Avalanche blockchain to process payments and lets users hold, send, and spend the USDe stablecoin. A stablecoin is a type of cryptocurrency designed to maintain a steady value, often pegged to a traditional currency like the U.S. dollar.

The beta starts with 400 users, with plans to expand access weekly throughout September. The app is currently available in 49 countries across Latin America, the Caribbean, Asia, the Middle East, Africa, and Oceania. The U.S., European Union, U.K., and Canada are listed as coming later.

How the rewards work

Ethena Pay offers a tiered reward system for users holding USDe in the app. The total advertised rate of up to 6% per year combines the base USDe rate with a “Daily Boost” from Ethena Pay. This is not an extra 6% on top of the base rate.

• Standard users earn a 5% total rate on up to $5,000.
• Pro users earn 6% on up to $15,000.
• VIP users earn 6% on up to $50,000.

Balances above these caps earn only the base USDe rate. Users must make at least one qualifying card transaction each month to receive the boost. The boost is paid daily in USDe and can be reduced or ended by Ethena Pay at any time.

The app also offers cashback on card spending, with rates up to 5%. Standard users get 4% cashback on the first $2,500 of monthly spending, Pro users get 4.5% on the first $8,000, and VIP users get 5% on the first $20,000. Cashback is paid in AVAX, the native cryptocurrency of the Avalanche network, and does not apply to certain transaction types like crypto purchases or gambling.

App features and limitations

Ethena Pay combines a self-custodial wallet—where users control their own funds—with fiat onramps, transfers, and a Visa card. The card is issued by Third National, a Puerto Rico-chartered bank, and managed by Rain. It is only available to non-U.S. persons. Digital-dollar balances in the app are held in USDe, with Avalanche handling transfers and settlement.

The app does not convert customer balances into sUSDe, a staked version of USDe. Instead, it uses the variable base USDe rate. Ethena’s protocol documentation states that sUSDe rewards come from discretionary protocol revenue deposited into a staking contract by a subsidiary of the Ethena Foundation.

Why this launch matters

The launch of Ethena Pay extends the use of USDe beyond trading and investment, offering a way for users to spend the stablecoin directly in everyday transactions. However, the beta begins with limited access, and the highest rewards are tiered and capped.

Sources

• The Defiant