jakiro
Source: Chain Observation
How to think of the newly launched Ethereum Stable Coin Synthetic U.S. dollar project @Ethena?As far as data is concerned, it has accumulated over $ 1.5 billion in assets for 3 months, and the market expects is extremely hot.However, after talking about the “stable” color change after the Luna mine incident, what will the emergence of Ethena bring to the Crypto world?Let me briefly describe some personal views:
1) Any innovative paradigm chain stable currency synthetic asset project has a basic value: reducing users’ dependence on the traditional legal currency banking system, because the traditional financial system cannot support users to do it quickly and efficiently between the US dollar and cryptocurrencies and cryptocurrencies.Conversion.
Bitmex founder Arthur Hayes has deeply elaborated this fact in an article entitled “Dust on Crust”: When more and more crypto assets are separated and legal currency exchange, it is equivalent to grabbing market cakes with the banking system, so banksThe system is unwilling to provide services for encryption assets. Some banks willing to serve are just to obtain short -term high benefits, which will cause anti -baying pressure to the encryption market.
The optimal solution, the Crypto market needs a synthetic US dollar system that does not rely on the traditional bank’s financial system, just like the original intention of Nakamoto Inventory Bitcoin.
2) So how does Ethena peel off the traditional banking system?Specifically, Ethena Labs uses ETH as the underlying asset standard. When the user injects a certain amount of STETH assets into the agreement, the platform will MINT corresponding value USDE stable currency assets.A special mechanism: The method of cryptocurrency and equivalent futures short -sustainable contracts mentioned in the Arthur article.
When ETH prices rose, the price of ETH held by the platform appreciates, but its reverse permanent contract will cause losses. Conversely, when ETH prices fall, ETH will cause losses, but its reverse perpetual contract will beIt will bring benefits.That’s right, this is almost the same as the concept of our usual personal user habits.
3) As a stable currency issuance platform, how can we continue to benefit and hedge the corresponding risks?
1. In order to avoid STETH deposited in CEX, an uncontrollable black swan thunderstorm risk (FTX exchange), so directly stores in custody platforms such as COBO and CEFFU to huge liquidity out of control;
2. Hold a lot of STETH stored in users.The platform can deposit it into the Ethereum POS consensus system to obtain a stable 3-4%APY income;
3. Potential income such as the capital rate and price difference of the platform on the derivative platform (about 27%);
4. If the elite traders of the platform can make high probability precise prediction on the supply and demand and market price of the market’s market, it can also achieve the amount of benefits as much as possible while continuously increasing the supply of stable currency: for example,, for example,, for example,When the platform judges that the supply of stable coins in the market increases, it can sell cryptocrete assets and make multiple markets. On the contrary, it continues to increase the secret assets and short -term markets. Of course, in the long run, the platform will definitely be the purpose of increasing the supply of stable currency.The timely change strategy in the process is the “space” of increasing income.
4) The 4 -point factors mentioned above can only reduce risk. Some potential risks actually exist objectively, such as:
1. Pure safety and stability risk of POS Validators (SLASH);
2. The risk of losses of traders’ strategy errors in CEX Kaiyong Continuation contract, as well as the risk of making more money on the demand for the supply of stable currency, but the stagnant coin supply business is stagnant; it is stagnant;
3. The risk of contract trading funds;
4. In case STETH has the potential liquidation risk of price breach of anchor, etc. (low probability).
In short, Ethena’s existence philosophy has the basic guarantee of Crypto world on strong demand for stable coins. Therefore, as a newly issued stable currency asset, it will definitely be popular with the market. The growth of TVL during this period and the expected expected activities of the Binan Launchpool event.It has been verified: Everyone is afraid of stable currency synthetic assets, and everyone is looking forward to stable currency synthetic assets.Especially a stablecoin project that can continue to bring high APY and as little as possible.
I personally think that Ethena needs to be continuously observed with the inch of the contract market as the anchor as an anchor, because the platform to expand the stable coin income is destined to become a “big short” in the market.
Under a market trend that continues to be bullish, if the main driving cause is better, but if the platform is more towards interest orientation, it wants to scrape oil on the DEFI protocol on the Ethereum.The trading strategy is maximized, which will be very challenging in the current trading market that is not so stable.
However, the market always seems to be repeating similar stories. The big bull market seems to be detonating by some new financial assets or special models. Anyway, take a prudent attitude to see its changes.
