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TheModestThief🎩
@thief
Can someone explain why isn't (or can't) Ethena built on Arbitrum (or any other L2s)? The gas fees are atrocious frfr.
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taranis
@taranis.eth
ethereum is more decentralized, trustless and stable (no sequencer failures). It will not take long before you can bridge liquid staked tokens can be bridged and you can also accumulate points or whatever via L2.
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BraveNewDeFi
@bravenewdefi
I don’t think this is it, sir. Deposits in Ethena end up in an MPC wallet that opens positions on CEXes, so it’s more likely that Ethereum mainnet is where capital needs to be for that reason.
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taranis
@taranis.eth
Dont see a reason why they cannot bridge the staked tokens to other chains. Similar to the liquid restaked tokens where you can still farm eigenlayer points on L2 Capital will stay on ethereum but same goes for ETH which only exists on ethereum but can be bridged to other chains by escrowing it in bridges
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BraveNewDeFi
@bravenewdefi
You can bridge LSTs, sure, but it doesn’t make sense for what they’re doing. When you deposit in Ethena, those funds go into a custodial wallet and are then used to open perp positions on CEXes. It’s not the same as someone farming EigenLayer points.
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taranis
@taranis.eth
Think were not on the same page... I'm certain that their stable coin and yield (and points) will be accessible for L2 users within months (maybe even weeks), because its quite easy to build something like this.
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BraveNewDeFi
@bravenewdefi
I agree with this point. Someone can build on top of them on an L2 and I’m sure someone will. Mode’s L2 is already planning on doing this: https://mode.mirror.xyz/wcJLh0rjq_1_KJ0bSof_ApCw7MhYyjlDIGulSlSQmHg https://warpcast.com/bravenewdefi/0x0f79d0a0
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