Ethena is Doomed to Fail: Here's Why
HTML-код
- Опубликовано: 21 авг 2024
- Ethena has taken the crypto world by storm over the last few months and has become one of the fastest growing stablecoins every. But Ethena has a lot more risks and possibility of failure than most people are aware of. In this video, I break down how Ethena works, why it's risks are extremely serious, and what a protocol failure could look like.
Actually I kinda changed my mind on this. It may be that TVL plummets for a while but the difference with UST is that, due to the double position taken up, USDE will always be fully backed no matter what the market does. Yes, APY may drop to zero, but it will still be fully backed. It's a relief actually because it means there is no systemic risk.
Would be nice to have a small follow up today considering how things go
thx for the analysis.
good stuff!
i realized now that you predicted the luna crash MONTHS before another guy on youtube who - i thought- did it very early.
but no, you did way earlier.
would love to see more of your stuff.
im also interested in the trade (last point of your video).
thx mate
Awesome! I'll try to make a tutorial soon, i have this trade on myself right now actually.
And yeah I wasn't the first one calling Luna unstable but I was definitely pretty early. Appreciate the comment!
Is $DAI safer than Ethena? What are the risks there? Can you make a video about differences between $DAI v.s $ETHENA?
Very clear and informative. Really enjoyed watching 2! More content in the future?
Edit: Do you have X?
Great to see you coming out with new content. Hopefully we will see some more new videos including your suggested tutorial. Thanks again for your thoughtful perspective. What do you think of Gyroscope and GYD?
Really appreciate the content, I've been pretty busy inside of Optimism Gov for the last few months but hoping to get back on the content train.
Gyroscope is a really interesting protocol, something I've reviewed but would love to do a deeper dive on. I might look into it.
Very indepth analyais and provided another angle to this very well done
thanks for the comment, I appreciate it!
How to do this perpetual swap trade yourself like Ethena without risk? Can you make a videio about it that you suggested to do if I commented?
amazing video mate really cool great evidence
Is the project of "VOID" (on Base Chain) sustainable or even good, it aims to acts as an index fund for Base it has created liquidity pools with like 10 projects and says it will just continue to expand, it withdraws 1% from its main liquidity pools on a timer and uses that money to create liquidity pools and pairs with other promising tokens and burns VOID but like is this even sustainable?
Why are you assuming ethena can’t close the trading positions once funding rates go negative? They can exit the perpetual futures market at any time. So if they do that, bottom APY would be 0% rather than negative
It's pretty hard to unwind billions of dollars in positions, but even if they CAN unwind them the TVL of the protocol would logically go to zero.
@@TheBlockchainGuy but TVL is no problem, it doesn't mean money is lost. It's better if TVL is zero than if yield is negative.
Why do you think there could be trouble with unwinding such positions?
@@zgintasz2 he cant bcs he doesnt know :D
What fundamental reasons ensure that funding rates will consistently remain long, and how does Athena plan to navigate potential negative funding rate scenarios effectively? Could you do more videos on RWA altcoins?
Do you have any suggested RWA projects I should look in to?
Thanks for the analysis. pleace where is SDAI renting 15%? Also i will like to se how to put the trade yourself.
Trade video coming soon!
Fantastic vid. before this market tanks like the LUNA cascade, ENA is probably going to do well until it doesnt? Greed is in human nature…Super helpful vid. Subd
Serious question if I buy $10k ENA and do a $10k short on usde, is it basically a risk free investment on ENA?
Not really, because one likely scenario is that the TVL goes near-zero during negative or low funding rates. In that case USDe could hold its peg but ENA will likely go down (just my opinion, not financial advice)
What is the link to tutorial to do the trade ourself?
will publish soon! subscribe if you want to be notified, will probably film today and edit tomorrow
Interested too. Would be helpful to touch on the different conditions this trade is in profit zone vs not. And the magnitude of returns/losses too. Thank you!
literally everything in crypto crashes in the bear markets.'
just enjoy the ride, and time out before crash.
great analysis as always
It's a shame that with coins like this the market can stay dumb longer than a short can stay liquid.
If Ethena expected APY swings really low on pendle I may short USDe (or sUSDe) tho.
from the looks of it no CEX or protocol was stupid enough to allow borrowing USDe tho xD
How will you exactly short a stablecoin or LSD?
good video! new subscriber!
Good info. thanks man!
Glad it was helpful!
Fantastic video!
They have built in misalignment between the protocol and its users into the design
100%
thank you. you may have saved me from bankruptcy 😊
Thanks
Thanks for watching!
@@TheBlockchainGuy always great content
The guy is a complete fraud no evidence of him doing zilch prior to this basis trade.
Dont like the tokenomics.. its awful
there is nothing for them to do but print the token to infinity
when i heard first time of ethena first thing was ltcm fund