@macho-snob

Ethena’s 60% crash raises questions about the viability of synthetic dollar protocols. Despite the setback, their survival hinges on adaptability and trust. Ethena’s USDe, a synthetic dollar, faced regulatory hurdles, like Germany’s BaFin halt, yet saw $1.1B USDtb growth and institutional backing from Copper and Fireblocks. This shows resilience amid volatility. Synthetic dollars offer a crypto-native alternative to traditional banking, appealing in DeFi’s expanding ecosystem. However, risks—regulatory uncertainty, market swings, and peg stability—persist. Protocols must innovate, ensuring robust collateral and transparency, to regain confidence. Historical crashes, like Terra’s UST, highlight the stakes, but Ethena’s pivot to USDtb and RWA bridges suggests potential. Survival is possible if they balance innovation with risk management, proving synthetic dollars can endure beyond speculative hype.

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