Ethena's money-making logic

1. Assuming we invested $1,000 in #stETH, after deducting various hedging and operating costs, we can mint $1,000 in USDe.

2. Then Ethena will automatically open an equal amount of ETH on the centralized exchange (#CEX) perpetual contract short position for U ($USDT or $USD) 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, so that troubles can be avoided, such as asset misappropriation or CEX explosion.

4. There are two ways to make money continuously in this operation, and it will also be given as a reward to the staked USDe (sUSDe):

5. The annualized income of staking PoS on Ethereum is about 3.2%; the income of staking PoS is relatively fixed, which guarantees a basic stable income.

6. In addition, the funding fees and basis spreads earned from delta hedging derivative positions can generate an annualized return of 5 to 30%.