cryptobanking

Something just worries me about Ethena. The USDe is a long ETH, short ETH-USD perp synthetic, and that screams bad to me. There's plenty of times when the perp funding rates are negative or even the spread becomes massive between spot and perp markets. I'm not sure I would call this a "dollar" at all.

“a scholar” - coindesk; “an absurdist” - bloomberg; “a disappointment” - my mother // creator @wildcat, special advisor @euler

OK I'm not the only one here who thinks this is crazy.

People believe perps just magically enforce par as if we haven't had multiple flash crashes and even speculative attacks to try and knock out shorts.

This feels like a crypto version of a Soros style attack in the making and likely wildly dangerous.

This reminds me of Drysdale Securities blow up in the 80's. 

Any time someone says there's a rate harvesting delta neutral trade where it's possible for the market to configure max losses, but they claim the probability is near zero, you should run away.

They're either extremely stupid, or lying.

It's even worse than that, isn't it? Long stETH rather than actual ETH, so also exposed to Lido risk + depeg risk, and the latter is virtually a guarantee once we reach the cycle peak.

Many are ringing the bell: https://x.com/tbr90/status/1759846452761686179?s=46&t=trwIpDxkZnCuFB9MvNhLlA