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Noah Bragg 🔥
@nbragg
Hey @pinged, What’s the chances that Ethena has a crash like Terra Luna did?
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Mitchell C
@macroguy
We can argue whether $ENA is the next $LUNA. One thing we can’t deny is that it’s centralised AF. We gunna deposit into a protocol that takes our assets to a CEX for funding rates? That is bonkers imho Bull market means ethos and etiquette is forgotten.
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Mike 🎩
@michald
They do not take the assets to CEX from what I read. Assets are custodied away from CEX, but yes the hedge is done using CEX. So the risk with CEX is that of the market-to-market P&L. CEX goad bust and your P&L is gone.
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Mitchell C
@macroguy
Interesting. So no death spiral to zero like luna/ust, but a depeg could be caused by hedging counterparty going bust? Probably less risky than holding usdt/usdc where it could all be frozen/confiscated.
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Mike 🎩
@michald
USDT/C is a political risk. USDe is a design/depeg (of STETH) or funding rates reversal (bear market) risk. Pick your risks: the former is philosophical/ideological, there latter more market/product related.
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