Binance will list Ethena (ENA) at 16:00 on April 2, 2024 (Eastern Eight District Time), and open the ENA/BTC, ENA/USDT, ENA/BNB, ENA/FDUSD and ENA/TRY trading markets. Today we will objectively analyze the project background, financing, business, etc. of Ethena (ENA), and make a prediction on the price of the upcoming #ENA token for your reference.

Ethena is a synthetic dollars protocol built on Ethereum that will provide a crypto-native solution for currencies that do not rely on traditional banking system infrastructure, while providing a globally accessible U.S. dollar Denominated savings instrument - "Internet Bond".

Ethena Labs' current main product is the Delta-neutral synthetic dollar (USDe). The creative inspiration of this product comes from Arthur Hayes, the founder of BitMEX. In March 2023, Arthur wrote an article titled "Dust on Crust", in which he talked about his idea of a new generation of stablecoin "Satoshi Dollar", which is to create a stablecoin supported by equal amounts of BTC spot longs and futures shorts.

Ethena Labs implemented Hayes' idea, but with ETH as the underlying asset. USDe is based on equal amounts of spot ETH and futures ETH short collateral. The two hedge each other to become a Delta-neutral stable asset. Delta neutrality means that USDe's collateral casting position is basically unaffected by ETH price changes, thereby ensuring the reliability of the asset.

Analysis and Price Prediction of Ethena (ENA) Project Coming to Binance with a $300 Million Valuation

Binance will list Ethena (ENA) at 16:00 on April 2, 2024 (Eastern Eight District Time), and open the ENA/BTC, ENA/USDT, ENA/BNB, ENA/FDUSD and ENA/TRY trading markets. Today we will objectively analyze the project background, financing, business, etc. of Ethena (ENA), and make a prediction on the price of the upcoming #ENA token for your reference.

Ethena background

#Ethena is a synthetic dollars protocol built on Ethereum that will provide a crypto-native solution for currencies that do not rely on traditional banking system infrastructure, while providing a globally accessible U.S. dollar Denominated savings instrument - "Internet Bond".

Ethena Labs' current main product is the Delta-neutral synthetic dollar (USDe). The creative inspiration of this product comes from Arthur Hayes, the founder of BitMEX. In March 2023, Arthur wrote an article titled "Dust on Crust", in which he talked about his idea of a new generation of stablecoin "Satoshi Dollar", which is to create a stablecoin supported by equal amounts of BTC spot longs and futures shorts.

Ethena Labs implemented Hayes' idea, but with ETH as the underlying asset. USDe is based on equal amounts of spot ETH and futures ETH short collateral. The two hedge each other to become a Delta-neutral stable asset. Delta neutrality means that USDe's collateral casting position is basically unaffected by ETH price changes, thereby ensuring the reliability of the asset.

On the other hand, after ensuring asset stability, Ethena generates interest for #USDe in two ways:

Pledge income from spot positions. Ethena Labs supports staking spot ETH through LSD protocols such as Lido, thereby obtaining an annualized return of 3% to 5%.

Short funding rate gains. Although the funding rate is more volatile, in the long term, shorts are the party that earns positive funding fees. Ethena obtains higher but more volatile returns through this method, which currently ranges from 5–20%.

Ethena’s synthetic U.S. dollar, USDe, is fully transparently supported on-chain and freely composable in DeFi. Ethena was built to solve the biggest, most obvious immediate need in crypto.

Ethena Financing Status

On February 16, 24, Ethena Labs completed a $14 million strategic round of financing with a valuation of $300 million. Dragonfly, Brevan Howard Digital and Maelstrom, the family office of BitMEX founder Arthur Hayes, jointly led the investment, and PayPal Ventures, Franklin Templeton, Avon Ventures, Binance Labs, Deribit, Gemini and Kraken participated in the investment. This round of financing adopted the structure of simple agreement for future equity and token warrants.

On July 17, 2023, the crypto startup Ethena completed a $6 million seed round of financing, led by Dragonfly, and supported by trading platforms such as Deribit, Bybit, OKX, Gemini and Huobi, as well as BitMEX founder Arthur Hayes and his family office.

Ethena Protocol Risk Points

Last October, Austin Campbell, a professor at Columbia Business School and founder and managing partner of Zero Knowledge Consulting, published an article dismantling the design structure of USDe. Austin pointed out in the article that he prefers to call USDe a "structural note" rather than a stable currency, and analyzed USDe's four layers of potential risks:

The first is the security risk at the pledge level. Whether the security and sustainability of the pledge nodes can be guaranteed;

The second is the security risk of futures contract opening platforms. Whether it is DEX or CEX, there is the risk of hacker attacks;

The third is contract availability risk. Sometimes there may not be enough liquidity to conduct short selling;

The fourth is the funding rate risk. Although the funding rate for short positions is positive most of the time, there is also the possibility of turning negative. If the comprehensive rate of return after the weighted pledge income is negative, for "stablecoins" it is Quite deadly.

ENA Token Price Estimates

Based on calculations based on previous Binance Launchpool new mining #BNB pools, the average annualized rate of return for the first ten periods is 123%. Assuming that the annualized rate of return for this mining is also 123%, according to mining Calculated in 3 days, the price of the ENA token is 0.45 USDT. Calculated based on AI’s minimum yield of 0.18%, the guaranteed price is 0.18 USDT.

Based on a total token supply of 15 billion, when the price reaches 0.45 USDT, the FDV is $6.75 billion. In the current pre-market trading market, Aevo has given a higher price to ENA of about 0.65 USDT, which corresponds to an FDV of up to $9.75 billion.

In addition, as the price of BNB rises rapidly, it is difficult for new mining yields to maintain the previous high level. #ETHFI⁩ has even hit the lowest yield in the past ten periods. However, after the initial chip sell-off, ETHFI has faced There was a rapid and violent rise.

It is also based on the strong trend of ETHFI that first declined and then rose. At present, relatively radical investment experts in the OTC community are generally optimistic about the mid-term trend of ENA, and even gave a higher estimated price of 2 USDT, so everyone may wish to hold on appropriately. If you have chips, don’t be too busy selling.

Looking ahead, there are several other key things to keep an eye on surrounding Ethena Labs, in addition to the $14 million in funding it just closed.

The first of these is naturally the public launch of the product and the disclosure of the relevant token economic model.

Second, Seraphim, Lido's previous external "face" and head of expansion, has moved to Ethena Labs as head of growth, which may help promote Ethena Labs' product integration.

Third, Binance Labs has included Ethena Labs in the first batch of incubation projects in Incubation Season 6, which may also be a major boost to Ethena Labs' accelerated growth.

Challengers on the stablecoin track have come and gone, and I hope that this time, Ethena Labs and USDe will bring a different story.$eth #BinanceLaunchpool #BinanceLaunchpool #writetoearn #ethena