🔉Ethena ENA is not a stable coin
ETH's ENA is not a stablecoin in the traditional sense like USDT or USDC. Instead, it is part of a synthetic dollar protocol, where its value is derived from a delta-neutral strategy involving ETH and ETH derivatives. While the goal is to maintain a stable value similar to a stablecoin, ENA's value is not directly tied to a fiat currency like the US Dollar.
ETH's protocol, which includes the USDe token, aims to provide a stable digital asset through a combination of collateral and derivative positions. By using stETH as collateral and opening a corresponding short position on a derivatives exchange, the protocol attempts to create a situation where any decrease in the value of stETH is offset by increasing the value of the short position, thus maintaining a stable value for USDe.
