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.

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.

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.