The new coin ENA, which was launched on Binance a few days ago, brought unexpected surprises to many investors. Ethena launched a large-scale airdrop event, which made many coin holders become active promoters of this project. These coin holders voluntarily promoted the project on social media, which made the project get more attention.

ENA project has also been discussed a lot in the WeChat group in recent days, and I have also gained some results, mainly around one question: how to value ENA?

Advantages of ENA

1. Good track

ENA belongs to the algorithmic stablecoin track, which is the holy grail of the currency circle-if BTC is the holy grail of the decentralized ideal, then the native stablecoin is the obsession of the currency circle. But in this kind of thing, we have seen too many failed cases. Even garbage projects like ampl can attract more eyeballs through advertising, and every bull market will have latecomers to reap the wealth of latecomers.

2. High yield

ENA is the first stablecoin in history to generate high yields-Brother Mao knows the power of high yields, which is the foundation of the currency circle. From its emergence to now, the biggest advantage of Bitcoin is its wealth effect.

Profitability

Unlike most other projects in the crypto space, Ethena is also incredibly profitable. It has leapt into the top most profitable dApp in crypto, eclipsing all of DeFi, and 🐳🐳qun+v: tq58956 👈 second only to Ethereum and Tron in terms of 30d revenue generation. Ethena’s profitability is expected to come from the total yield. Currently, this portion of the yield goes to the insurance fund, but we expect to eventually distribute this portion of the yield to bidders. Assuming a 10% yield, Ethena’s protocol conversion rate is: Total Yield * (1–90% * (1 — sUSDe Supply / USDe Supply))

This dynamic also highlights why USDE has succeeded as a stablecoin. The more USDe is used as a stablecoin, the less USDe is staked, and the more profitable Ethena becomes.