Advantages of Collaboration
1. Strengthening the DeFi Ecosystem:
• Instead of competing destructively, Usual and Ethena are joining forces to create a more robust ecosystem. This can be seen as a way to cooperate to grow together in an emerging market.
• If Usual demonstrates that it can maintain dollar parity with the help of Ethena, it also generates trust among users.
2. Diversification and Stability:
• For Usual Money, integrating Ethena's assets as backing could be a way to diversify its risks and strengthen user trust.
• This collaboration ensures more liquidity and a stronger backing, which, in theory, should stabilize both stablecoins.
3. Shared Innovation:
• The collaboration could also lead to more advanced financial products. If both platforms benefit, users will also be favored.
Problems and Negative Perception
1. Perception of Weakness:
• Some users may see this as a sign that Usual Money cannot stand alone, raising doubts about the stability of its currency (USD0). They might think that Usual depends on Ethena, which could benefit Ethena more in terms of reputation.
• In this case, Ethena may appear to be the more solid platform, which could lead users to migrate towards it.
2. Diluted Competition:
• Collaborations between 'competitors' in an emerging market can dilute the appeal of individual brands. In this case, users might ask: 'Why choose Usual if Ethena already offers similar products and seems more solid?'
3. Long-term Dependence:
• If Usual Money relies too much on Ethena's resources, it could become vulnerable if the relationship changes in the future. This could jeopardize the stability of its currency and its reputation.
This collaboration can be strategically beneficial in the short term to strengthen both platforms and attract more users. However, in the long term, Usual Money should focus on building its own differential value. If it is perceived as a 'dependent' of Ethena, it could lose identity and trust among users.
• If Usual uses this collaboration to strengthen its infrastructure and eventually becomes more independent, it could come out ahead.
• But if Ethena continues to lead, it could consolidate itself as the 'most trusted brand' in the sector and overshadow Usual.
It all depends on how Usual manages its growth strategy and its ability to stand out with its own innovation.
