The analysis of the revenue is very detailed👏

The revenue of LSD is almost negligible, mainly due to the airdrop expectation + the funding rate paid by long positions.

However, the market pricing of airdrop expectations is actually more inclined to "self-proving logic". After all, the logic currently used to price it is based on the current capital volume and market sentiment.

Therefore, in summary, there may be a nonlinear sentiment singularity - the funding rate continues to be negative and continues to expand, the market begins to discuss Fud, the USDe yield drops sharply + the de-anchor discount, and then the market value plummets (user redemption):

For example, if it falls from $10 billion to $5 billion, Ethena must close its short position and redeem the collateral (such as ETH or BTC). If there are any problems in the redemption process (wear and tear caused by liquidity problems in extreme market conditions, large market fluctuations, etc.), the anchoring of USDe will be further affected~

This negative feedback mechanism cannot be ruled out by malicious sniping, triggering this singularity, thus facing a negative spiral dilemma similar to the collapse of UST

##USDe ##ethena_labs ##ENA