@sumaa

since you mfs love the defi beef, I have my next target: Ethena - one of the worst defi projects to come out of this cycle. Fundamentally a stablecoin backed on yields from a trade that does not scale will never work. Total Stablecoin (173B) USDT: 120B (69.3%) USDC: 36B (20.8%) DAI: 5B (2.3%) USDe: 2.5B (1.4%) Ethena is backed by a carry trade - a delta neutral strategy where you go long spot, and short perps to capture funding payments on the perps side. It's effectively an arbitrage between funding and borrow rates. Like any arbitrage, operating this trade with size slowly begins to diminish it's returns. With only 1.4% market dominance, ethena has around 5% of BTC and ETH OI. Such positions become very hard to unwind without incuring massive slippage. My biggest concerns: - How does ethena handle rates flipping for long period of time? - How quickly can ethena exit their positions in the case of a bank run? - What happens when yields are near zero? who wants to prove my thoughts on ethena wrong?

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