Ethena (#ENA) Panorama of the Money Printing Machine Mode

Outline:

🚀 Ethena (ENA) Project Overview and Development Milestones

💡 Technology and Product Details

💎 Token Distribution

🌟 Investment and Market Performance

🗳️ Token Governance and Applications

💰 Token Price Prediction

Project Overview and Development Milestones:

Binance Launches Ethena (ENA): Binance launched Ethena (ENA) as the 50th Launchpool project and officially launched ENA on April 2.

Ethena and USDe Creation: Ethena is the creator of USDe, a synthetic dollar protocol built on Ethereum.

Market Milestone: In February 2024, Ethena launched a new USD stablecoin USDe with an annual interest rate of over 27%, and USDe supply has soared to over $1.5 billion, making it one of the fastest USD-denominated assets to reach this milestone in crypto history.

Technical and product details:

Inspiration and goals: EthenaLabs draws inspiration from Arthur Hayes' "Dust to Crust" article and is committed to creating a derivatives-backed stablecoin that solves the major problem of cryptocurrency's dependence on traditional banks. Its goal is to provide a decentralized, permissionless savings product for a wide audience.

USDe's innovative path: EthenaLabs' synthetic dollar USDe aims to be the first crypto-native, censorship-resistant, scalable and stable financial solution, achieved by delta hedging of collateralized Ethereum.

Internet Bond: EthenaLabs plans to introduce a product they call "Internet Bond" together with USDe. This will be a crypto-native, yield-generating, USD-denominated savings tool based on collateralized Ethereum returns and leveraging funding and basis differences in perpetual contracts and futures markets.

Differences from other projects: Unlike other CDP projects, EthenaLabs' USDe generates its USD value and yield by leveraging stETH and its inherent yield and taking ETH short positions to balance Delta and leverage perpetual/futures funding rates.

Strategy and Returns: This strategy allows the protocol to synthetically create a Delta-neutral CDP, holding Ethena's sUSDe (collateralized USDe) essentially becoming a basis trade, providing users with exposure to the difference in returns between these positions, currently generating an approximate yield of ~27%.

Token Allocation:

Total ENA Token Supply: The total supply of ENA is 150,000,000,000, with an initial circulating supply of 1,425,000,000 at listing (approximately 9.5% of the total token supply).

**Token distribution ratio:** 2.00% of the total number of Binance Launchpool tokens, 25.00% of the total investor tokens, 30.00% of the total team tokens, 15.00% of the total foundation tokens, ecology 28.00% of the total system tokens and 0.15% of the total supply of tokens will be distributed to SchizoPosters and Redacted Remilio Babies series NFT holders.

Investment and Market Performance:

Initial investment and financing: USDe developer Ethena Labs received investment from Avon Ventures, a venture fund affiliated with FMR LLC, the parent company of Fidelity Investments.

**Financing situation:** The latest round of financing was valued at US$300 million, and the two rounds of financing were US$20.5 million. Participating investors include Galaxy Digital, OKX, Dragonfly, Binance Labs and Bybit.

Governance and Application:

The role of ENA coin in governance: ENA coin will play a key role in Ethena governance. Voting using the tokens will determine the general risk management framework, USDe support composition, exchange and custodian risks, community grants and reserve fund size, among other uses.

Key Risks and EthenaLabs’ Mitigation Measures:

Custody risk and strategy: EthenaLabs uses "over-the-counter settlement" (OES) providers to custody assets, effectively managing concentration risk by spreading collateral among multiple OES providers.

Centralized Exchange (CEX) Risks and Strategies: The protocol uses derivatives on centralized exchanges to balance the delta of collateral, reducing the risk of any single exchange failing by diversifying the exchanges that hold assets.

Collateral risk and strategy: EthenaLabs actively monitors the on-chain integrity of stETH, maintains contact with liquidity sources, and is prepared to replace collateral if necessary.

Liquidation risk and strategy: EthenaLabs has processes for rebalancing collateral, transferring assets, and utilizing insurance funds to protect against liquidation risk.

Funding risks and strategies: Insurance funds act as a safety net when comprehensive returns are negative, ensuring the stability of collateral.

Collateral Drawdown Queue/Risk Reduction and Regulatory Risk Strategy: EthenaLabs positions itself to effectively adapt to regulatory changes by aiming to operate in compliance with the EU’s MiCA regulations.

Token price prediction:

The market has actually given a reasonable price expectation:

The range is between 0.5 USD and 0.8 USD