Profitability of Ethereum platform "Ethena" evaluated = Delphi Labs CEO
A sure bet
Jose Maria Macedo, CEO of Delphi Labs, which conducts research and development of the Web3 protocol, claimed that the Ethereum-based DeFi protocol "Ethena" will be the highest revenue-generating project in all crypto assets (virtual currencies).
Macedo is also the founder of Delphi Ventures, a venture capital firm specializing in virtual currency investments, who stated in his blog published on April 2 that "Ethena is one of my most confident bets this cycle, both at Delphi Ventures and personally," and cited the following three reasons for his decision.
• sUSDe offers the highest dollar yield of any virtual currency by a large margin
• USDe will be the largest stable coin after USDC/USDT in 2024
• Ethena will be the highest revenue-generating project in the entire virtual currency
Ethena is an ETH staking, interest-distributed stablecoin "USDe" issuing platform funded by DragonFly, Arthur Hayes personally, Binance Labs, OKX Ventures, and others.
Also referred to as "synthetic (synthetic) dollars," Ethena's USDe tokens use ETH liquidity staking tokens (LSTs), such as Lido's stETH, as backing assets and combine them with an equivalent short (short-sell) ETH indefinite futures position on a derivatives exchange to maintain a dollar value of USDe and provide investors with a stable yield.
Ethena's native tokens soar
Ethena's native token "ENA" was airdropped to the target audience on the 2nd and listed on several exchanges, including Binance, Bybit, and KuCoin. It began trading at a price of about $0.64, but by 2:00 a.m. Japan time on the 4th, it had doubled to $1.22. As of writing, it is trading at $1.04.
Ethena's native token "ENA" was airdropped to the target audience on the 2nd and listed on several exchanges, including Binance, Bybit, and KuCoin. It began trading at a price of about $0.64, but by 2:00 a.m. Japan time on the 4th, it had doubled to $1.22. As of writing, it is trading at $1.04.
Arthur Hayes, former CEO of BitMEX, an investor, spoke highly of the Ethena Labs project and said bullishly that the price of ENA would go up to $10.
Congrats u2066@ethena_labsu2069 on a successful TGE. if this is what $ENA is worth the market is puking, imagine how high it will go once we resume up only!$ENA = $10It's just math yo ... pic.twitter.com/rKGW7ofHzi
On the 2nd, Ethena began offering USDe holders an airdrop of 750 million ENA, equivalent to 5% of the total supply; X's post says that 72% of the immediate firm claim has already been claimed, but the reward will be redistributed to other users once the 30-day claim period is over.
According to data from Arkham Intelligence, some of the holders received ENAs worth about $2 million (300 million yen) in airdrops.
Related: ethereum-based Ethena to list on Binance, soars on premarket Aevo
Rated as an excellent stable coin
Macedo asserted that "stablecoin remains one of the killer apps for virtual currency," and explained how the market has shown that it is looking for yield in stablecoin, and that the USDe offered by Ethena is well designed to meet that demand.
Stablecoins can be backed by legal tender such as Tether (USDT) or USDC, backed by excess collateral such as DAI, or issued based on algorithms such as RIP, but each is unique, he noted, and does not address all the trilemmas of decentralization, stability, scalability and capital efficiency.
On the other hand, USDe is superior in terms of security and scalability, he said.
In my view, USDe is the most scalable fully collateralized stablecoin ever created, and while it is not and will never be fully decentralized, I still think it is at a very interesting point in the distribution of gain/loss valuations.
He added that stablecoin is a "$100 billion ($15 trillion) opportunity" and would be hard to compete with Ethena on the scale of yield.
According to Ethena's official website, USDe currently offers an annual interest rate of 35.4% to over 118,000 users.USDe's current market capitalization is approximately $1.977 billion ($299.9 billion), ranking it fifth among stablecoins (CoinGecko data).
Some concern about risk.
There have been cases of high-yielding stable coins that have not lasted long and have gone bust, Terra's UST being a prime example.
Andre Cronier, founder of developer and Fantom, which was in the limelight during the 2020 DeFi boom, noted on social networking sites, "Now that the market is up and the short funding rate is positive, there will still be no problem, but if the situation reverses in the future, the funding rate could become negative and the collateral for the position could be liquidated and become an unbacked asset.
"In response, Guy Young, founder of Ethena, pointed out in an interview with the international media outlet Cointelegraph that these concerns are healthy skepticism for an industry that is recovering and maturing from the 2022 Terra collapse, explaining that while the high yields of the UST Anchor protocol were artificially inflated, "the USDe yield generated by the staking revenue and short positions in ETH perpetual futures contracts is publicly verifiable.
Related: How to Buy Ethereum｜What Beginners Need to Know about Investment Benefits, Risks, and Choosing a Recommended Exchange
