jakiro
Author: Ken
The new currency mining projects launched in the recent periods of Binance have significantly improved the quality, such as AEVO, ETHFI, and Ethena. Whether it is mining income or the follow -up performance of the tokens, it is quite eye -catching.
Take the algorithm stable coin (ENA), which was launched on April 2, and the price has increased by 120% from low to now after the launch.
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What are the innovations of Ethena?
1. Ethena innovation
The Ethena project was inspired by Arthur Hayes, the founder of Bitmex, the Dust On Crust published by Arthur Hayes, the founder of Bitmex.
The article mentioned his idea of the new generation of stablecoin, that is, creating a stable currency co -supported by the equivalent BTC spot bulls and futures shorts.
Ethena Labs turned ARTHUR’s ideas into reality, but did not use BTC as the main asset of opening positions, but chose ETH.
In other words, Ethena is a synthetic US dollar agreement based on Ethereum. It launched a USD stable currency USDE and ENA is its platform token.
USDE is actually a algorithm stable currency. Unlike USDT and USDC’s casting mechanisms, the stable currency USDE cast through the Ethena protocol. Its underlying assets are not US dollars, but ETH.
Specifically, the USDE’s mortgage assets are composed of equivalent spot ETH bulls and futures ETH short. This can achieve hedging, which is the set that we often hear.
Therefore, regardless of the price of ETH, USDE can maintain “stability”. In professional terms, it is to achieve “Delta neutrality”.
And these ETH assets are not stored on the centralized exchange, but are hosting platforms such as COPPER, CEFFU, and Cobo. This can avoid risks such as running or misappropriation of exchanges to a certain extent.
2. Source of benefits
The competition of the stable currency track is very fierce. In the face of the old stable currency such as USDT, USDC, and DAI, how can USDE get more market share?
The biggest highlight of USDE is the yield. USDE pledged users can share the dual -income from mortgaged assets.
First of all, 2024 is the pledged year. There are more and more projects for pledge and re -pledge tracks. The underlying assets of USDE (such as ETH, etc.) can be at least through these pledge platforms to obtain relatively stable pledge income.Lido and other platforms to obtain an annualized income of about 4%, so as to ensure the most basic stable income.
Secondly, you can get a certain amount of funding on these futures platforms.Although the funding rate is an unstable factor, for short positions, the time that the capital rate is positive for a long time, which also means that the overall income will be positive.
Let’s take a look at Ethena’s specific APY (annualized yield).
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According to the Defillama platform statistics, Ethena’s MEDIAN APY was minimum of about 5%, up to about 55%, which is much higher than the yield provided by other DEFI platforms.
Third, financing
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Ethena raised a total of US $ 20.5 million through two rounds of financing. The latest financing occurred on February 16 this year, and completed $ 14 million in financing for $ 300 million.
Ethena’s investment team is very luxurious, such as Binance Labs, OKX Ventures, Dragonfly, etc. Among them, Okx Ventures and Dragonfly participated in both rounds of financing.
In the Ethena investment team, we also saw the traditional financial giants such as PayPal and Franklin.
In addition, the founders of multiple CEX platforms and derivatives trading platforms have also participated in Ethena’s investment.
Fourth, TVL and Revenue
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According to the statistics of Defillama platform, Ethena TVL has grown very fast. At the beginning of this year, it only had more than 8,600 US dollars. At present, it has reached 1.857 billion US dollars. In 3 months, TVL has increased by 21 times. The Ethena platform is much higher than other than others.The platform’s APY contributed.
At present, the amount of casting of USDE has also exceeded 1.9 billion pieces.
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According to data from the Defillama platform, the Ethena platform average monthly Revenue (income) can reach more than 18 million US dollars, and the average REVENUE can reach more than 230,000 US dollars per day. Compared with the profitability of other DEFI platforms, the profitability of the Ethena platform can be said to be quite equivalentStrong.Of course, whether this high yield can continue to be observed.
5. Risk
Ethena’s risk is mainly due to::
1. Pickup platform risk
Putting the USDE’s underlying assets on the pledge platform to earn income, of course, you need to face some risks, such as the pledge platform is broken by hackers. Of course, this is not just the risks that USDE face.
2. Risk of futures contract platform
For example, the platform is evil, and is hacked.
3. Risk of funding rates
Although the funds rate of short positions is positive most of the time, there is also a possibility of turning negative. If the comprehensive yield rate of the weighted pledge income is negative, the impact on “stable currency” has a greater impact.
In short, although the algorithm stablecoin is not the original of Ethena, compared to Luna, Ethena has many innovations. For exampleStability.
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At present, the market share of stablecoins has exceeded $ 150 billion, and it continues to grow. Among them, USDT has exceeded $ 100 billion, and the USDE of Ethena is currently less than 2 billion U.S. dollars.The gap.
In addition, if the issuance of USDT is determined by the project party, then the issue of USDE is determined by the user. How large the size of the USDE is in the end will be determined by the user. If Ethena can continue to provide high returns, it will attract more usersTo cast, if this model can continue, the size of the USDE is likely to exceed our imagination. As the size of the USDE becomes larger and the platform continues to run smoothly, then the application scenarios of USDE will become more and more, and it will also be more and more, and it will also be.It will be embedded in more DEFI applications, and it may even become basic stablecoins.
As an Ethena platform tokens, ENA will capture the value brought by the development of the Ethena platform. As the size of the USDE is getting larger and larger, the use scenario is richer and richer.If the market value of tens of billions of dollars in LUNA, ENA’s future space is still very large.Of course, whether Ethena’s innovative model can continue, we need to wait for the verification of time. We wait and see.
P.S does not constitute any investment advice.
