Ethena Labs has recently made headlines by integrating Bitcoin (BTC) as a backing asset for its synthetic dollar, USDe, aiming to leverage the deep liquidity of Bitcoin futures markets for scaling. This strategic move is expected to significantly scale USDe from its current supply of $2 billion. The decision has sparked discussions within the cryptocurrency community, drawing comparisons to Terra's UST, a stablecoin that faced challenges, due to USDe's outsized yield, rapid growth, and how it's structured. Critics have raised concerns about Ethena's investment strategy, particularly its allocation of 38% of funds into Tether USDT, questioning the risk management practices of the firm. Additionally, Ethena Labs plans to engage in purchasing and shorting Bitcoin as part of a cash-and-carry trade, aiming to create a safer synthetic dollar product for its users.