According to PANews, Fantom founder Andre Cronje expressed concerns on Twitter about a new trading mechanism. Cronje noted that this new infrastructure is gaining a lot of attention and being integrated into what he considers to be very low-risk protocols, but he believes that this new protocol (possibly alluding to Ethena's USDe&sUSDe) is very high-risk. He discussed in detail the features of perpetual contracts, such as the ability to trade without holding trading assets, the “funding rate” that buyers and sellers need to pay, and the mechanism of using stETH as collateral.

Cronje admitted that this was not his area of ​​expertise, but he tried to compare these financial instruments to the most basic financial concepts he knew - collateral and debt - and noted the risk of eventually needing to close the position or face liquidation. He raised the issue that the theory of simply closing a position when the market reverses would be difficult to implement in practice, and suggested that this could lead to owning an unbacked asset.