Ethena’s USDe Grew to $2 Billion in 7 Weeks. Is It Safe? - Ep. 629

Ethena's synthetic dollar, USDe, hit a $2 billion market cap in just seven weeks, raising eyebrows. Ethena Labs founder Guy Young explores the risks of reinventing the digital dollar.
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This week, Ethena was in the spotlight after the airdrop of ENA, its new governance token. Ethena’s flagship product, the “synthetic dollar” USDe has amassed a $2 billion market cap in less than two months. Meanwhile, ENA’s market capitalization sits around $1.4 billion, with a fully diluted valuation of $15.5 billion.
In this episode, Guy Young, founder of Ethena Labs, discusses the risks associated with Ethena, including custodial risks and counterparty risks to exchanges. Young also talks about the use cases of Ethena's governance token, and discusses the potential for Ethena to be integrated with DeFi and CeFi.
Show highlights:
🔹 An introduction to what Ethena is and how USDe works
🔹 Why the team doesn't want to refer to USDe as a stablecoin, and prefers to use the term "synthetic dollar"
🔹 What the risks of USDe are, including custody, counterparties, and smart contracts
🔹 Why Guy is "pleased" with how the ENA airdrop went through
🔹 How ENA will be used and what its role will be in the governance of Ethena
🔹 Why Ethena is now onboarding Bitcoin as collateral
🔹 Why Guy thinks that there's been an "exaggeration" regarding the situation with Maker and Aave
🔹 Guy's response to the critics who say that Ethena is essentially Terra/Luna
🔹 Whether USDe would only work in a bull market
🔹 How the Ethena insurance fund works and what it aims to accomplish
🔹 What's next for Ethena after onboarding Bitcoin, with Solana potentially being the next asset
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Guest
⭐️Guy Young, founder of Ethena Labs
_______________________________________________________
Time Stamps:
00:00 Intro
02:49 Overview of Ethena and USDe
03:55 Why he prefers the term "synthetic dollar" over "stablecoin" for USDe
05:45 USDe risks: custody, counterparties, smart contracts
07:26 ENA airdrop
08:26 ENA's use and governance role
09:48 Bitcoin as collateral for Ethena
15:27 Perspectives on Maker and Aave's situation
18:06 Addressing comparisons to Terra/Luna
20:08 USDe's safety in bear markets
21:48 The Ethena insurance fund's goals
23:06 Future plans: Solana?
28:55 Weekly recap
_______________________________________________________
#bitcoin #ethereum #crypto #cryptocurrencies
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Пікірлер: 38

  • @PabloLoso
    @PabloLosoАй бұрын

    Cristiano Ronaldo is the Ethena founder? SIIIIUU

  • @5us4nt0

    @5us4nt0

    Ай бұрын

    🤣🤣

  • @MtnMichael88

    @MtnMichael88

    Ай бұрын

    Looool same exact thought. Myyyy mannnn

  • @hu-man-oid
    @hu-man-oidАй бұрын

    bought enough ENA at 0,95 yesterday, I was waiting for that price “forever” I missed their launch price 0,64. After I read their project I was convinced the price in the future will increase significantly, I’m saying by end of 2024 to be arround $2-$5

  • @4d-zi2ck
    @4d-zi2ck23 күн бұрын

    can somebody explain to me the purpose of knowing the fully diluted marketcap?

  • @WT83
    @WT83Ай бұрын

    I remember them saying they were going to grow it slowly to make sure the insurance fund could keep up and the mechanics were solid. 7 weeks later, $2B market cap with a sub-$50 million insurance fund...

  • @tomd3787

    @tomd3787

    Ай бұрын

    The insurance fund is if the funding rate goes negative. Should be a bout 9 basis points a day if that happens (using the worst case scenarios from the past). That is about $180k a day.

  • @user-ol7tl1vf5m
    @user-ol7tl1vf5m23 күн бұрын

    No institution, including the state, is exempt from criminal activity. The continuous accumulation of state debt without citizen input, primarily to service interest on existing debt, can be viewed as a form of theft against its citizens. This practice contributes to higher inflation, diminishing the value of citizens' savings and purchasing power. Consequently, citizens may seek to protect themselves from this harmful activity. Consider the collective impact if 300 million citizens were to take legal action against the state for this wrongdoing. Such unified action could significantly impact holding the government accountable and seeking restitution for the financial harm inflicted by inflation. The extensive involvement of citizens in legal proceedings against the state would underscore widespread recognition of the injustice and harm caused by governmental actions. This would exert substantial pressure on the government to address these issues and implement meaningful reforms to prevent further financial damage to its citizens. Additionally, this level of citizen engagement could precipitate significant changes in the political landscape, compelling policymakers to heed the voices of the people and enact policies prioritizing fiscal responsibility and transparency. In essence, the possibility of 300 million citizens pursuing legal recourse against the state for this criminal activity underscores the potential for collective action to instigate positive change and hold government institutions accountable to the populace they serve. The more you know.

  • @4d-zi2ck
    @4d-zi2ck23 күн бұрын

    ouch..i wouldn't want to be guy, Laura's going to tear him apart. He has highly tradfi mentality he couldn't care a less about btc or eth, which is fair enough....expect to see many more people like guy building products like this in crypto.

  • @all4love
    @all4loveАй бұрын

    Wow what a robotic voice Mr ENA has! it's a bullish sign 😂.

  • @Dappveloper

    @Dappveloper

    Ай бұрын

    Not sure if CEO or AI speaking xD

  • @patrickp8315

    @patrickp8315

    Ай бұрын

    Same thought, he sounded like a robot

  • @izaldeen_zee
    @izaldeen_zeeАй бұрын

    Ethena $2 dollars in few week 🚀🚀🚀

  • @HarryBuxley
    @HarryBuxleyАй бұрын

    Kinda pointless asking _Ethena founder_ is it safe. What answer do you expect. ?? I don't know if the mechanics are safe, but I do know if you wanna know if its safe or not this is not the place you are gonna find the answer. Not even gonna watch this episode, waste of time.

  • @taccntb4345
    @taccntb4345Ай бұрын

    Better yet... Does Laura intentially choose click bait FUD titles...?

  • @glowlog

    @glowlog

    Ай бұрын

    it's an open question, for a synthetic stable earning 50% apy, it's a valid question

  • @blitzio
    @blitzioАй бұрын

    CR7

  • @viterbertus4977
    @viterbertus4977Ай бұрын

    Ena $20 soon❤❤❤

  • @jookaaboo

    @jookaaboo

    Ай бұрын

    Will it reach?

  • @hu-man-oid

    @hu-man-oid

    Ай бұрын

    bought enough ENA at 0,95 yesterday, I was waiting for that price “forever” I missed their launch price 0,64. After I read their project I was convinced the price in the future will increase significantly, I’m saying by end of 2024 to be arround $2-$5

  • @DIYDEGEN
    @DIYDEGENАй бұрын

    Obviously unsafe wen rug

  • @RoyReyes
    @RoyReyesАй бұрын

    is it robbing peter to pay paul?

  • @wiamlaamoumri2375
    @wiamlaamoumri2375Ай бұрын

    What's the best way to make money from crypto investment as crypto is turning around massively.?

  • @DaveCampbell-bi45h

    @DaveCampbell-bi45h

    Ай бұрын

    I think all you need is an expert assigned by a brokerage company that will trade for you and handle your capital professionally and give you weekly returns of investment without any extra fees attached

  • @DaveCampbell-bi45h

    @DaveCampbell-bi45h

    Ай бұрын

    I personally employ Ms. Evelyn Turner as my t'rader. Her ability to t'rade and produce big pro:fits, in my opinion, is excellent.

  • @user-sj5yw6fo6h

    @user-sj5yw6fo6h

    Ай бұрын

    Yeah that's right I think the best way is to invest with a professional, at least it saves the trauma of too much losses.

  • @user-sj5yw6fo6h

    @user-sj5yw6fo6h

    Ай бұрын

    ​@@DaveCampbell-bi45h Really you actually knew her?I thought I was the only one she has helped me through the fears and falls of trading

  • @Gilmore-ho8rz

    @Gilmore-ho8rz

    Ай бұрын

    Seeing a remark regarding my manager Evelyn Turner is quite energizing. It was just like this when I first met her a few weeks ago. Having started with just 3k about 2-3 weeks ago, I have already made it to 25 k. She is very remarkable!

  • @tyga8418
    @tyga8418Ай бұрын

    Next Luna obviously

  • @hu-man-oid

    @hu-man-oid

    Ай бұрын

    Easy to type stuff without any type of knowledge regarding cryptocurrency world, probably you didn’t even graduate high school

  • @DIYDEGEN
    @DIYDEGENАй бұрын

    Wen is the rug. We all expecting a collapse like Luna & waiting for an entry to short at $4.44-$8.88