CeterisParibus (ceterisparibus)
Macroeconomic Research
1 Followers
Recent casts
Top casts
#Ethena and #USDe (2) #Ethena uses these coins to buy reference assets like #ETH or #BTC to increase #USDe's value. This process is called long underlying asset, but it comes with risks due to the volatility of these assets affecting #USDe's value, especially in bear markets.
- 1 reply
- 0 recasts
- 0 reactions
#Ethena and #USDe (3) To maintain #USDe's value around $1, #Ethena opens Short Positions in invested assets equal to the Long Positions (1:1 ratio), creating a delta hedging strategy. This ensures that if #ETH drops by 10%, Short Positions offset the decrease to maintain #USDe's $1 value.
- 1 reply
- 0 recasts
- 0 reactions
#Ethena and #USDe (4) Holding Long and Short Positions also earns #Ethena a Funding Yield from pricing differences between reference asset prices and derivatives. This yield can be distributed to users who deposit coins on the protocol.
- 1 reply
- 0 recasts
- 0 reactions
#Ethena and #USDe (1) #USDe is a Synthetic Dollar created by depositing coins like #USDT, #FRAX, #DAI, #crvUSD, and #mkUSD on the #Ethena protocol, a process known as stake (where depositors earn rewards).
- 1 reply
- 0 recasts
- 0 reactions