Sources
Loading...
Additional media
Loading...
DeepNewz, mobile.
People-sourced. AI-powered. Unbiased News.
Ethena Labs, a decentralized finance platform, has attracted attention for offering a 27% APY through staking ETH and a positive funding rate. The platform has launched the USDe stablecoin and a Shard Campaign to engage users, sparking debate in the crypto community about its sustainability and risks. Ethena's high yield on stablecoins is generated through a synthetic dollar protocol, with questions raised about its innovative nature or potential risks. The platform's yield comes from a basis trade productized into a stablecoin, involving staking ETH on LidoFinance and margining $STETH on a third-party platform to short ETH. Despite the significant rise in USDe token market cap and staking yield, concerns have been raised about the stability and risk associated with Ethena's offerings.
🚨PSA🚨 I don't know who needs to hear this but @ethena_labs is fundamentally broken. You can and may lose all your capital in $USDe in the future. Not only is USDe not a stablecoin, it is NOT a synthetic dollar. USDe is a structured product that has one specific investment… https://t.co/Lenb8pnp5D
Ethena has seen a staggering rise in its USDe token market cap, increasing almost fourfold from $91 million to $352 million since the start of 2024. The inflows can partly be attributed to USDe's whopping 27.6% staking yield. @httpsageyd reports https://t.co/umetEOjuAj
🫣 @ethena_labs Stablecoin 27% Yield is Triggering Terra-Induced PTSD People are asking, where does the yield come from? and is it actually a stablecoin? Read more: https://t.co/zTttdUhAgG https://t.co/Zy4fAA8RzJ