defi-research

ヽ(⌐■_■)ノ♪♬ @ @gauntlet/🤖Ventures/tldr/Aera \\ ¯\_(ツ)_/¯ Struggling with the nature of randomness \\ main: @gaa \\ /red-bull /defi-research maxi

Hey @pinged,

What’s the chances that Ethena has a crash like Terra Luna did?

Building /stokefire a mobile strategy game onchain. Run and own poolfish.xyz a calculator for LP providers. Built Potion solo and sold for $300k.

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.

Macro analyst focusing on crypto. Dabbler of memecoins.

Ex investment banker, currently crypto enthusiast. Oh, and also run a restaurant chain in Poland

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.

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.

Andre Cronje (of Fantom) wrote a long form post on X on why ENA is high risk - hope this helps!

Andre Cronje (of Fantom) wrote a long form post on X on why ENA is high risk - hope this helps!

https://twitter.com/AndreCronjeTech/status/1775398490404724914

That is a really good point.
We are putting a lot of trust into some operators.