4 months ago
It's concern arsenic accustomed for Ethena's USDe arsenic the synthetic stablecoin appeared to upwind the tempest brought connected by marketplace volatility from the White House's commercialized warfare threats.
USDe differs from stablecoins specified Circle's USDC due to the fact that it's a synthetic stablecoin and not backed by fiat assets astatine a 1:1 ratio. The stablecoin maintains its $1 peg by collateralizing stablecoins and leveraging a hedged cash-and-carry trade, which involves taking futures positions with ample unfastened involvement disposable to stabilize value.
USDe spent astir of the Monday trading time maintaining its $1 peg, with little dips down to $0.999. Data from CoinGecko shows that the stablecoin's marketplace headdress inched supra $6 billion, up from astir $5.7 cardinal a week ago.
Its backing complaint besides remained positive according to on-chain data. Funding rates are important for maintaining USDe's peg to the dollar and managing marketplace equilibrium.
A affirmative backing complaint indicates that holders of agelong positions are paying a tiny interest to holders of abbreviated positions. This suggests a somewhat bullish marketplace sentiment.
Another crushed wherefore USDe whitethorn person maintained its peg is due to the fact that of the involvement bearing quality of the token, which presently pays retired an APY of 10%, which has been unchangeable implicit the past 30 days according to a dashboard from Dune Analytics.
Last twelvemonth immoderate interest was raised astir the size of Ethena's reserve money for USDe, with probe location CryptoQuant highlighting that the money mightiness not beryllium sustainable implicit $4 billion.
However, this reserve money has grown proportionately to USDe's marketplace cap, and stands astatine $46.6 million astatine the extremity of Q4 2024.
Crypto marketplace harmless haven?
USDe's stableness positive yield-bearing entreaty means investors could instrumentality refuge successful the token. Arthur Hayes, main concern serviceman astatine integer plus concern money Maelstrom and co-founder of BitMEX, who expects BTC to descent to $75,000 successful coming weeks, has grounds vulnerability to USDe.
"Maelstrom has raised the magnitude of staked Ethena $USDe it holds to grounds levels and continues to instrumentality profits connected respective shitcoin position," Hayes said successful a blog post past week.
"We are inactive bigly nett long, but if my feeling is correct, past we volition beryllium positioned with copious amounts of adust pulverization acceptable to bargain the dip connected Bitcoin and a mega dip connected galore prime shitcoins," Hayes added. Hayes is an capitalist successful and an advisor to Ethena.
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