suiUSDe, also known as eSui Dollar, is a proprietary, yield-generating synthetic dollar native to the Sui blockchain. Announced on October 1, 2025, it is the result of a partnership between the Sui Foundation, the Nasdaq-listed SUI Group Holdings Limited (SUIG), and Ethena Labs. The asset is powered by Ethena's infrastructure, which is also behind the USDe synthetic dollar. SuiUSDe is designed to be a core component of Sui's Decentralized Finance (DeFi) ecosystem, with its generated revenue being used to purchase SUI tokens, creating a growth mechanism for the network. It represents the first time an income-generating, Ethena-powered stable asset has launched on a non-EVM blockchain. ^{[1] [2] [3]}​

History

• October 1, 2025: The Sui Foundation, SUI Group, and Ethena Labs officially announce the partnership and plans to launch suiUSDe and a related stablecoin, USDi, on the Sui network. The initial launch window was scheduled for Q4 2025. ^{[1] [2] [4]}
• February 11, 2026: The eSui Dollar (suiUSDe) goes live on the Sui Mainnet. The launch included its integration into the DeepBook Margin system and the creation of a permissionless suiUSDe yield vault on Ember Protocol, seeded with an initial $10 million by SUI Group Holdings. ^{[5] [1]}

Overview

suiUSDe is a stable asset designed to maintain a value pegged to the US dollar. It is not a traditional fiat-collateralized stablecoin; instead, it is a synthetic dollar backed by a portfolio of crypto assets and corresponding short futures positions. This structure, pioneered by Ethena Labs, allows it to generate a native yield from its backing reserves. ^{[1] [3]}​

The launch is part of a broader strategy to enhance Sui's DeFi capabilities, provide new financial primitives for developers, and drive value back to the native SUI token. Its introduction on the high-performance Sui network aims to facilitate large-scale stablecoin transfers and complex DeFi strategies. According to Marius Barnett, Chairman of SUI Group, the strategic goal was twofold: "Launching the Ethena-backed suiUSDe was about establishing native, reliable dollar infrastructure on Sui. Seeding the suiUSDe Vault with $10 million is how we move that infrastructure into active use." ^[5]​

Technology and Mechanism

suiUSDe's functionality is powered by Ethena Labs' technology, delivered through its "Stablecoin-as-a-Service" stack, also referred to as the Ethena Whitelabel product line. This allows partners like Sui to launch their own branded synthetic dollars using Ethena's established infrastructure. ^{[1] [4]}​

Backing and Yield Generation

The asset is backed by a delta-neutral portfolio. This strategy involves holding spot crypto assets (e.g., staked ETH liquid staking tokens) while simultaneously holding an equivalent short position in perpetual futures for those same assets. This approach is designed to neutralize the price volatility of the underlying collateral, maintaining the peg to the US dollar. ^{[1] [3]}​

The yield for suiUSDe is generated from two primary sources:

1. Staking rewards from the underlying spot crypto assets.
2. Funding payments received from the short perpetual futures positions. ^[3]

Native Integration on Sui

As a native Sui asset, suiUSDe is designed to integrate deeply within the Sui DeFi ecosystem, operating as active on-chain market infrastructure rather than a simple tokenized representation of off-chain cash. A key feature is its integration with DeepBook Margin, a system that embeds margin trading directly into the Sui network's liquidity layer. This allows suiUSDe to be used natively for leveraged trading, risk management, and rewards within a single venue. The choice of Sui as the host network was strategic, leveraging its high throughput and scalability. In August 2025, the Sui network recorded $229 billion in stablecoin transfer volume, demonstrating its capacity for high-performance financial applications. ^{[5] [1]}​

Partnership

The creation of suiUSDe is a three-way collaboration noted as an industry-first between a foundation, a publicly traded digital asset company, and a stablecoin protocol. ^[1]​

• Sui Foundation: A key partner in the initiative, the Sui Foundation helps guide the project and ensures its alignment with the broader ecosystem's growth. It is one of the entities responsible for using the generated revenue to buy SUI tokens. ^[3]
• SUI Group Holdings Limited (NASDAQ: SUIG): A Nasdaq-listed company focused on the Sui ecosystem's treasury. SUIG co-announced the launch, participates in the SUI token buyback program, and deployed the initial $10 million into the suiUSDe yield vault. Chairman Marius Barnett described the launch as a step toward building a "next-generation 'SUI Bank'" and creating a "publicly traded gateway to the global stablecoin economy." ^{[1] [2]}
• Ethena Labs: The technology provider behind suiUSDe. Ethena is the creator of USDe, a rapidly growing synthetic dollar. The collaboration utilizes Ethena's expertise and infrastructure to expand its stablecoin model beyond the EVM ecosystem. Guy Young, Founder and CEO at Ethena Labs, stated, "Sui’s performance and composability made it a clear choice for bringing these powerful, new-age stablecoin products beyond the EVM." ^[1]

Tokenomics and Ecosystem Impact

Value Accrual

The core of suiUSDe's tokenomics is a direct value accrual mechanism for the SUI token. All net income generated by the asset's reserves, after deducting operational costs, is systematically used to purchase SUI tokens on the open market. This process, executed by the Sui Foundation and SUI Group, is designed to create a sustainable, self-reinforcing value loop, where the adoption of suiUSDe directly contributes to buy pressure and liquidity for the SUI token. A portion of the net revenue generated is also allocated to SUI Group's treasury to strengthen its balance sheet. ^{[1] [3] [2]}​

suiUSDe Yield Vault

Upon its launch, a permissionless suiUSDe vault was established on the Ember Protocol to provide stablecoin-based yield opportunities for both institutional and retail users.

• Operating Protocol: Ember Protocol (incubated by the Bluefin team).
• Initial Seed: $10 million, provided by SUI Group Holdings.
• Initial Capacity: The vault launched with an initial capacity of $25 million. ^[5]

Protocol Integration

SuiUSDe was integrated across multiple protocols on the Sui blockchain at launch, enabling its use in a variety of DeFi activities such as trading, lending, and yield farming. Protocols supporting suiUSDe include:

• Aftermath
• Bluefin
• Cetus
• Navi
• Scallop
• Suilend ^[5]