ENA (Ethena) - New LUNA? 🟢

10 de mai.

What is Ethena (ENA)?

Ethena is building a derivative infrastructure to allow Ethereum to transform into a global internet bond via delta-neutral positions on stETH, creating the first cryptographic revenue-generating stable coin: USDE.

Website ethena.fi/

Fundraising cryptorank.io/ru/ico/ethena

Westnig(unlocks) cryptorank.io/ru/price/ethena/vesting
Athena allows users to deposit USD, Ethereum, or Liquid Staking tokens as collateral to create USDe. Stability is provided through a delta-neutral hedging process across centralized and decentralized exchanges.

Collateral is distributed to protect custodial wallets in the network, and the corresponding short position is used for delta-neutral collateralization.

USDe is the first decentralized, scalable, and stable asset with returns derived from Ethereum's economic activity and futures markets.

Tokenomics

Maximum Supply

ENA 15,000,000,000,000

Total raised | Strategic | Seed

$ 20.50M | $ 14.00M | $ 6.50M

FDMC

$ 14.47B

Capitalization

$ 148.47M

24-hour trading volume

$ 2.37B

Circulation

ENA 1.43B (9.50% of Max Bid)

Tokens




Funds on board


Team


Conclution










Last words :)

Ethena has become a top synthetic stablecoin and reached 1.89B, showing an unusually high APY for USDe stakers of 35.4% while handing out a generous drop for stakers/lockers of all stripes.

The project is currently valued at 13.5B FDV / 1.3B mcap, occupies 15-18% of open interest in the etheEtherd has caused a lot of controversy, as it is compared to another experiment in the field of stablecoins - the defunct UST.

Let's find out if ENA is as bad as it is labeled.

USDe is a product of Ethena, a synthetic stablecoin. It is a long position of ETH, stETH, bETH, and USDT, concentrated at custodians Copper, Ceffu, and Cobo, and shorts ETH at 1x on the volume of available collateral on exchanges Binance, Bybit, Okx, etc.

Athena acts here as a hedge fund, which collects funding using a delta-neutral strategy on deposit funds of the Degen.

Since it is a bull market—and longists with shoulders are sometimes ready to pay up to 100% per annum, counting on upside token movement on futures—the aggregate market Ethena is targeting is ETH OI (15B). In the second season of farming, BTC OI (25B) is added.

As of April 2, Ethena has accumulated a 28M reserve fund, which they plan to use to cover interest income payments on days when fundings are negative.

On season 2 of Ethena token farming, the project wants to reach a steady volume in the fund of 55B (1.89B now).

Maker (DAI stables) decided to inject 11B DAI into Ethena, sensing a cool return on capital and weighing all the risks. AAVE, sensing direct competition from Morpho/Maker/Spark, is in favor of assigning DAI 0% LTV, which essentially means a ban on pledging DAI to borrow other assets and off-boarding DAI from the AAVE ecosystem.

What systemic risks are seen in Ethena:

1 Risk of slashing some of the staked ethers/loss of keys by staking providers, which would mean incomplete collateralization/shorting bias.

2 Insolvency of one of the exchanges, which could mean overexposure of ETH to longs e.g. in a sharply falling market, which could provoke panic among USDe holders who could start dumping it in pools to other stacks.

3 A long term period of negative rates or near-zero fundings rates for longs - will provoke Ethena to spend its reserve fund, and savvy degens will watch the assets in the reserve fund melt away and will short USDe if by then some of the protocols introduce USDe as an asset to borrow.

4 Derivative instruments that will allow for looping on usde, but will be highly sensitive to peg USDe, and in the event of a systematic attack on the peg - could cause cascading liquidations and unwinding of positions by loopy farming enthusiasts.

How does Ethena mitigate these risks?

1 Assets are stored off-exchange with custodians - i.e., bankruptcy of the exchange will not directly affect the collateral but may leave the project exposed to longs without protective shorts.

2 Over the last 3 years - negative interest on OI fundings was only 11% of days.

3 In case the fundings turn negative for shorts - the project could turn some of the open interest around and the scales would tip back towards logisticians, which would bring the fundings back into positive territory.

4 Unstacking from USDe takes 7 days, which may reduce the negative effect on unpegging, because for the sake of maximizing ENA farming, the capital forcibly blocks itself in exchange pools.

5 The risk of anpex of LST constituents to collapse Ethena would require 41-65% unwind vs. a maximum of 8% on stETH in 2022, linked to FTX's hunt for Celsius assets.

- Project like LUNA) only with a bunch of updates, with huge support and with a huge rate of noise growth around this project
- One of the important aspects is cliff blocks of all funds for a year, which will give the project the opportunity to grow very strongly in all indicators, get support from more structures
The project is on Defi Lama in the RWA category, which gives it a plus as this market category is now a hype, and a lot of money is pouring into it.
- a new idea for how stables will be managed.
- a new pledge system linked to EthEthern the downside

- large marketcap, but since the project with a stable, and is already in the top of stables, a large marketcap is normal for such projects, x5-10 from the current will be quite normal in volume.
- this stable is decentralized, unlike USDT and USDC, and as practice shows, there can be problems with regulators.
- Potential black swan at the end of the bull market) but until then there is still potential to grow.

Best regards EXCAVO

10 de mai.

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