Ethena USDe

DeFi

USDe

when

Frax

Within a few days of its inception, over $287 million worth of a new cryptocurrency called USDe has been created. Users who deposit stablecoins can get USDe and then put it to work by staking it. This means they lend their USDe to support the network and get rewards in return. The rewards, which are currently set at an approximate of 27%, can change over time.&nbsp; Introduction to Ethena USDe 
The way this works is that users lend their USDe to validators who help secure the network, and in return, they earn interest on their USDe. Additionally, they can make money by betting that the price of ether will go down in the future, a strategy known as shorting ether futures. This can be quite profitable, with estimated returns of over 20% based on past trends.
Ethena, a new finance platform, has been getting a lot of attention lately because it’s offering a high yield of 27% to people who hold its USDe tokens. Despite some criticism about how it works, many people are putting money into it. Before, it was only available to a small group, but now it’s open to everyone. Since it launched to the public, over $50 million worth of USDe tokens have been created, adding up to more than $287 million in total. The approximate 27% reward can change every week based on certain factors.
Users can put stablecoins like <a href="https://news.todayq.com/tether-made-more-money-last-quarter-than-goldman-sachs/" target="_blank" rel="noopener noreferrer nofollow">Tether</a> (USDT), Frax (FRAX), dai (DAI), Curve USD (crvUSD), and mkUSD into Ethena to get USDe. This USDe can then be staked, but it takes seven days to unstake it. The staked USDe can also be lent out to other DeFi platforms for more profit.
Ethena says USDe is a “synthetic dollar” that mostly acts like an algorithmic stablecoin. It’s supposed to stay around $1, and it’s made when people deposit <a href="https://news.todayq.com/ether-eth-hits-six-week-low-amidst-bearish-sentiment-and-revenue-concerns/" target="_blank" rel="noopener noreferrer nofollow">ether (ETH)</a> into the platform. The profit probability 
The profit comes from two things, staking ether to a validator and getting a 5% return on the money and betting against ether’s future price to get the funding rate, which has been about 20% historically.
This futures thing works like a “cash and carry” deal. It means someone buys an asset and sells a related contract at the same time. It doesn’t depend on the asset’s price changing, but it earns money from funding payments instead.
Some people in the crypto world think this idea has been tried before but didn’t work out. According to @0xngmi, who helps run DeFillama, two previous projects gave up because they lost money when their profits turned into losses. When profits flip into losses, you end up losing money, especially if you’re dealing with a large<a href="https://news.todayq.com/stablecoins-are-not-stable-says-new-zealands-governer/" rel="noopener noreferrer nofollow"> </a><a href="https://news.todayq.com/uk-set-to-introduce-new-rules-on-stablecoins-and-crypto-staking/" target="_blank" rel="noopener noreferrer nofollow">stablecoin</a>. Others think this idea might need to deal with challenges related to managing its risks.
i dont get why so many people are focused on ethena's high yield (its a basis trade) instead of the fact that there's been 2 projects that tried this before and both gave up because they lost money due to yields inverting— 0xngmi (@0xngmi) Conor Ryder, who leads research at Ethena, talked about worries in a recent online post. He said that the protocol had started using its rules, which were tested using past data and didn’t seem too risky. 
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Ethena’s USDe tokens hit over $287M in record time

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Ďalšie články zverejnené 20. 2. 2024

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