The holy trinity of crypto protocols that can be worth $50-100b+:
i) Stablecoins
ii) Blockchains
iii) Exchanges
Ethena’s first core product sits in the first category, but creates a unique nexus across all three via USDe.
Today we have released Converge, our vision of how we bind the full-stack together combining all of the above categories into our own chain in partnership with @Securitize and secured by staked $ENA.
We are not satisfied with just one product; we want to win it all.
In our view, the inflow of institutional capital into the space is the defining characteristic of this entire cycle, and will be for the years to come.
Our vision is to build the first purpose built settlement layer where TradFi will merge with DeFi, trillions of dollars of tokenised assets will flow onchain to co-exist with the existing financial infrastructure and applications we have already built around USDe.
Nov 24, 2024 • 13 tweets • 3 min read
Great thread from @joshua_j_lim on what USDe starts to unlock on @DeribitExchange
@DeribitExchange client base and funding mechanics are very different to more retail focused venues eg @Bybit_Official where baseline funding exists
Lack of baseline funding at ~11% APY causes Deribit funding to sit well below market in most "normal" funding environments closer to ~0%
Sep 30, 2024 • 17 tweets • 3 min read
In May I outlined our plans for this year which included looking to support new exchanges looking to build on Ethena
Shortly after we had the @etherealdex team reach out with their plan to build an exchange using USDe while benefitting $ENA holdersmirror.xyz/0x29a99F7Fe080…
The synergies between Ethena and exchanges are obvious
-Exchanges remain the most important venue for dollar demand and distribution
-Ethena has solved for the sell side liquidity of the market with existing inventory and hedging flows as a powerful tool to bootstrap new venues
Feb 19, 2024 • 15 tweets • 5 min read
Understandably seen some comments trying to understand the $sUSDe yield
After last cycle it is absolutely fair to diligence where the source of the yield originates from, and we are happy to discuss it openly
$USDe is issued by delta hedging liquid staking tokens with short Ethereum perpetuals position
In doing so, you combine the only two forms of scalable crypto native yield in a single instrument:
i) stETH ~4%, mETH ~7% or LRTs TBD
+
ii) Short ETH perpetual ~13-26% last 3m
Aug 25, 2023 • 28 tweets • 10 min read
1/ While nukes are never fun for our leveraged long homies
They are useful to stress test how specific exchanges and contracts respond to volatility and liquidations
Thread on how a delta-neutral strategy might perform, and can potentially be positioned to profit from chaos...
2/ Before looking at the liquidation event last week first a recap on 2023 to date
System leverage on ETH contracts was not particularly alarming
Aggregate open interest as a % of market cap was ~2%, less than half of 2021 highs, and less than a quarter of Oct'22
Jul 22, 2023 • 32 tweets • 8 min read
1/ Glad to see some valid questions starting to surface around the mechanism design of @ethena_labs and $USDe
To be clear: we as a team are committed to total transparency and want to engage fully with all of the tough but thoughtful questions you have
