Today, Bitcoin suddenly crashed and fell to $66,000, which caused a shock in the crypto market, and the bulls were slaughtered. But an interesting phenomenon appeared. The funds of mainstream currencies flowed into Memecoin. The total market value of Memecoin has soared to $70 billion. Even analysts say this is a "strange bull market." If there is another special phenomenon in this bull market, it may be the carnival of the Mao party.

The latest Binance LaunchPool has begun again, and this time the protagonist token is ENA. Today, with the surging wave of digitalization, the financial field is ushering in a disruptive change. Ethena Labs, as an innovator in the field of decentralized finance, is leading the trend of this change with its core project-synthetic dollars protocol. I believe you have read articles about ENA many times in social circles. After reading it, you are still confused. You don’t know what kind of project ENA is? Today I will introduce ENA.

First of all, this project is very eye-catching, focusing on the stablecoin project USDE. Currently, the annualized return on holding USDE reaches 35%. This project uses CDP for arbitrage, which is a kind of basis trading. The background of the investors behind it is astounding. Not only are industry giants such as Binance, Ouyi and Kraken involved, but founder Guy Young himself has more than 20 years of Wall Street experience and has worked in well-known institutions such as Morgan Stanley, Goldman Sachs and Citadel. hold office.

So, how is the 35% annualized income of this project achieved?

To put it simply, the project builds an investment portfolio, uses contracts to short Ethereum to obtain long funding rates, and then uses spot Ethereum for liquidity staking to earn income. Therefore, this project has huge development potential in the bull market.

So, when to enter?

Considering that the circulation of the coin is 15 billion, therefore, when the price of each coin is US$0.01, its market value is US$1.5 billion; when the price is US$0.02, the market value is US$3 billion.

Currently, the issuance of Dai, a similar stablecoin project like Maker, is 5 billion, while the issuance of ENA's USDE is 1.5 billion. Maker's total market value is US$4 billion, so ENA's conservative valuation should also be around US$1.5 billion, or approximately US$0.1.

However, the actual price is likely to be much higher than $0.1. Have you noticed its growing trend? is rising rapidly. When we invest, we focus not on current prices, but on future potential. Therefore, the true market price is likely to be priced in its future growth prospects.

According to the current trend, it may be priced to a market value similar to Maker's US$4 billion, so prices below US$0.2 or even US$0.3 can be considered. Of course, the specific pricing opportunities given by the market depend on the issuance of the currency. However, it currently trades at $0.6 off the market, giving it a market capitalization of approximately $9 billion. This price is a bit high. If you buy it at this price, you may have limited profit potential in the short term, and the risks may outweigh the opportunities. If the opening price is too high, there is no need to panic. We can wait for the pullback before buying, just like Etherfi, the price goes up and down after the opening, and then we enter, and then it explodes quickly, right?

The long-term development potential of this project is still considerable. Taking Binance as an example, after BUSD withdraws from the market, the exchange may consider introducing other stablecoins to enrich currency options, such as TUSD, USDC and FDUSD. So, is there any chance that USDE will be adopted by Binance? Although the probability is small, if it does come true, it will be a very awesome opportunity. I think prices above a dollar are possible.

In addition, whether this project will launch RWA (Real World Assets) of USD bonds in the future like Maker or TrueFi to increase the valuation, then it will also rise by more than 30%. These are very good development spaces, so from the perspective of the project side, they have a variety of potential means of promotion.

However, when entering a bear market, the funding rate of the Ethereum contract becomes negative and arbitrage opportunities are significantly reduced, so returns may drop significantly. But, you know, which coin will not fall in a bear market? This is an indisputable fact. Overall, the potential growth of this project is quite good. However, profitability still depends on being able to buy at a lower price. However, snapping up the opening price is a metaphysical issue. There is no need to be too anxious. Everything depends on fate! In any case, holding BNB is definitely a permanent profit. You will never lose money by mining, so buying more BNB and mining more mines may be the right choice.

ENA project introduction

Project name: Ethena

Token abbreviation: ENA

Total number of tokens: 15 billion

Sector: DeFi

Ethena is a synthetic dollar protocol built on Ethereum that will provide a crypto-native solution for currencies that do not rely on the infrastructure of the traditional banking system, as well as a globally accessible dollar-denominated savings tool - the "Internet Bond". Ethena's synthetic dollar USDe will provide the first censorship-resistant, scalable and stable crypto-native solution for funds realized by hedging pledged Ethereum collateral. USDe will be transparently fully supported on the chain and freely combined throughout DeFi.

USDe peg stability is ensured by using delta-hedged derivatives positions against the collateral held by the protocol.

The “Internet Bond” will combine proceeds from staking Ethereum with funding and basis from perpetual and futures markets to create the first on-chain crypto-native “bond” that can be used by users in permitted jurisdictions to A dollar-denominated savings instrument.

Understand the basic background of the project, but you can’t just look at the bragging ability of the project itself. You must also look at whether the project is promising and the financing behind the project. It is reported that the total financing amount of the Ethenas project is US$20.5 million, with a valuation of US$300 million. Financing institutions are all well-known institutions such as Dragonlfly, Binance Labs, and Paypel Ventures. Therefore, with the endorsement of an awesome group and big boss, it seems that it has a promising future. However, some people have discovered that the additional issuance of USDe may cause ETH to spiral upward and create a run risk for ETH, which will turn ETH into the next Luna. However, in the currency circle where pulling the market is justice, these may only be the icing on the cake. What’s more important is the price performance after launch.

At present, after $ENA was listed on Binance for the first time at 4 pm today, the opening price was 0.3 US dollars, and the highest was 0.84 US dollars. As of press time, the market price was 0.624 US dollars. Overall, the performance was mediocre. But for those who have high expectations for this project, they may be more willing to give this new coin some time and hope that it will become a hundred-fold dark horse this year. But whether it can become a dark horse will take time to verify.

What is the origin of BN’s new coin ENA? Is it worth buying? Bitcoin’s big surge is about to happen.

Do you know that the next big explosion of Bitcoin may not be far away? Its current price is seriously underestimated, and Wall Street is more anxious than anyone else. USDT, the hot money in the currency circle, is still pouring in crazily, and it is close to 110 billion US dollars. This is far more than the 80 billion issuance at the time of the last bull market of 69,000. Therefore, according to the standards of the last bull market, the current price of Bitcoin has reached 90,000. is reasonable. In addition, the on-chain data also gives the same answer. At the beginning of the last bull market, the Bitcoin stock in the exchange was close to 18%. Now, after 4 years of continuous WK, the Bitcoin stock in the exchange On the contrary, there are fewer Bitcoins, and the stock of exchanges has further declined, reaching a multi-year low of 11%, which shows that giant whales are frantically collecting funds and almost emptying the exchanges. The data on the chain is far more FOMO than you think. In other words, only 11% of all Bitcoins are currently on exchanges. This amount is much rarer than in the last bull market. In addition, Wall Street ETFs are now buying and selling like crazy, so not only the supply is reduced, but the demand is also decreasing. Increase, so now all the data show that we are on the verge of an explosion. Of course, the only concern in the market now is that Bitcoin has been corrected by 20% before and after halving in previous years. This may be the final negative. , once the halving is completed, it will be a complete bull market.

However, if Bitcoin dies, it will double again, so the upside potential of some small coins is actually greater.

BN has launched the new currency ENA. How is this project? How much should we buy?

First of all, this project is very eye-catching. It is a stablecoin project USDE. The current annualized return of holding USDE is 35%. It uses CDP for arbitrage, which is a basis transaction. The background of its investors is amazing. Not only are there giants such as BN, OKX and Kraken participating in the investment, but its founder himself said that he is from Wall Street and has worked in Morgan Stanley and Citadel for more than 20 years. So how does this project's 35% annualized return come from? Simply put, it is to make an investment portfolio, use contracts to short, use Ethereum to collect long-term funding rates, and then use Ethereum online for liquidity staking to earn coins.

Therefore, it has great room for development in the bull market. How much can we buy? The circulation of this coin is 15 billion, so if the price is 1 cent, its market value is 1.5 billion, and 2 cents is 3 billion. Currently, the circulation of similar stablecoin projects Maker's Dai is 5 billion, and the circulation of ENA's USDE is 1.5 billion. Among them, Maker's total market value is 4 billion US dollars, so ENA is conservatively worth 1.5 billion US dollars, which is 0.1U, but its actual price is definitely much higher than 0.1.

The current opening price of ENA is 0.5, so you can buy it below 0.2 or even 0.3U. It depends on whether the market will give you a chance. If USDE has a chance to be adopted by BN, although the odds are small, if it does happen, then he will be awesome. Damn it, I think it's possible to go to 1U.

Ethena’s money-making logic

1. Suppose we invest $1,000 in #stETH. After deducting various hedging and operating costs, we can mint $1,000 in USDe.

2. Ethena will then automatically open an equal amount of ETH to U ($USDT or $USD) perpetual contract short position on a centralized exchange (#CEX) for hedging.

3. The stETH we put in will not be thrown directly into CEX, but transferred to custodians such as #Copper, #CEFFU, and #Cobo. This will avoid troubles such as asset misappropriation or CEX crash.

4. In this operation, there are two ways to continue to make money, and they will also be given to the pledged USDe (sUSDe) as rewards:

5. The income from staking PoS on Ethereum is approximately 3.2% annually; the income from staking PoS is relatively fixed, ensuring a basic stable income.

6. There is also the capital fee and basis spread obtained from delta hedging those derivatives positions, and the annualized return can be 5 to 30%.

Team Ethena

Guy Young is the founder and CEO of Ethena. According to public information, Guy Young has no other project experience.

Elliot Parker is the director of product management at Ethena Labs. He was previously a product manager at Paradigm and worked at Deribit. He is one of the few members of the team with extensive Web3 experience.

Ethena financing status

Ethena completed a $6.5 million seed round of financing in July 2023, led by Dragonfly, with participation from Deribit, Bybit, OKX Ventures, BitMEX, etc.

In February 24, it was once again led by Dragonfly, with a US$14 million strategic investment from PayPal Ventures, Binance Labs, Deribit, Gemini Frontier Fund, Kraken Ventures, etc. The valuation of this round is US$300 million.

Ethena's financing lineup is very luxurious, with famous leading exchanges participating in the investment, and traditional finance also including PayPal. And because the project itself relies on centralized exchanges and derivatives exchanges, any well-known exchange you know can be involved behind Ethena.

Ethena’s earning power

Ethena’s daily income reached US$6.8 million in the past week, making it the most profitable decentralized application (DApp).

According to Ethena’s official website, it is now issuing USDe stablecoins to more than 350,000 users, with an annualized rate of return of up to 67.2%. Data from DefiLlama shows that Ethena’s USDe market value has increased by 43% in the past week and 409% in a month, reaching a total value of US$840 million.

Ethena Labs officially debuted on the public chain on February 19 this year. USDe offered an annualized rate of return of 27.6% as soon as it came out, far exceeding the 20% given by Anchor Protocol. This is higher than TerraUSD (UST) was before the crash last May.

Ethena is building derivatives infrastructure that enables Ethereum to transform into a global internet bond via delta-neutral positions on stETH, creating the first crypto-native, yield-generating stablecoin: USDE.

What is Ethena’s background?

1. Ethena completed $20.5 million touzi, led by #Dragonfly, and supported by trading platforms such as BN, Deribit, Bybit, OKX, Gemini and Huobi, as well as BitMEX founder Arthur Hayes and his family office.

•Seed round: price unknown, financing 6.5 million, valuation unknown

•Strategic financing: price 0.019u, financing 14 million, valuation 286 million

2. MakerDAO founder#Runealso mint 5.66 million USDT into USDe through his personal address on the 30th

Known shortcomings of Ethena

Austin pointed out in the article that he prefers to call USDe a "structural note" rather than a stable currency, and analyzed USDe's four layers of potential risks:

1. It is a security risk at the pledge level. Whether the security and sustainability of the pledge node can be guaranteed;

2. There are security risks in opening futures contract platforms. Both DEX and CEX are subject to the risk of hacker attacks.

3. There is a risk of contract availability. Sometimes there may not be enough liquidity to short sell.

4. It is the funding rate risk. Although the funding rate for short positions is positive most of the time, there is also the possibility of turning negative. If the comprehensive rate of return after the weighted pledge income is negative, for "stablecoins" It's quite deadly. Although Ethena's approach is innovative and has potential, the project is currently still in the testing phase and has not yet been fully launched.

Due to the uncertainty and volatility in the cryptocurrency market, Ethena’s stablecoin USDe still faces potential risks.

Ethena Price Prediction

The total amount of ENA is 15 billion, with an initial circulation of 1.425 billion (9.5%).

There are currently multiple valuation models for ENA price predictions on the market, such as:

1. Refer to the transaction price of OTC platforms (such as aevo, etc.): $0.65;

2. According to the average yield of previous Binance mining projects (annualized 123%): $0.45.

3. If the valuation is based on PE, the price will be higher. Because based on the recent#Ethenarevenue, Ethena's annual revenue will reach 330 million US dollars.