1. Basic introduction to the project
a. Introduction
b. Detailed explanation of the mechanism of ENA
2.How to obtain ENA chips💵
a. Official airdrop
b.Binance Launchpool🎁
c.Binance official promotion event🎁
Preface: I found that the quality of new coins recently launched on Binance is getting higher and higher.
In this issue, Binance Launchpool newly launched ENA, the utility token of the Ethena protocol.
About Ethena ($ENA)
Ethena is a synthetic dollar protocol built on Ethereum, the equivalent of an “internet bond.” It mainly uses spot purchases of ETH for pledge, and tokenizes its transaction collateral into stable coins. The mortgage casting position is basically not affected by ETH price changes, thereby ensuring the reliability of the asset.
Financing Overview
Ethena has been led by Dragonfly twice since July 2023, completing a seed round of financing of more than 6 million US dollars and a strategic round of financing of 14 million US dollars. It currently covers multiple leading trading platforms including Binance, and traditional financial PayPal has participated. The latest valuation has reached 300 million US dollars.
Binance will be the first platform to list ENA, and it will be listed at 16:00 on April 2, 2024. On the same day, an airdrop of 750 million ENA will be carried out. After the listing, ENA/BTC, ENA/USDT, ENA/BNB, ENA/FDUSD and ENA/TRY trading markets will be opened.
Detailed explanation of the mechanism of ENA
What are Ethena and USDe?
Ethena is a synthetic dollar protocol based on Ethereum that will provide a crypto-native solution for currencies that do not rely on the infrastructure of the traditional banking system. They are trying to solve the trilemma of stablecoins with synthetic dollars USDe.
Now when you stake USDe, you get the 25% annual yield promised by sUSDe, which is an incredibly high yield for a stablecoin? There are many questions here:
▹ How will it maintain such a high exchange rate?
▹ Where does this 25% return come from?
▹ How is this output different from LUNA? (The Terra system crash started with the decoupling of stablecoins)
Technically, most major stablecoins (e.g. USDT, USDC) are backed by real assets and currencies to maintain their pegs.
So how does USDe maintain its peg?
They essentially use a delta neutral strategy while doing long and short arbitrage on Ethereum.
When a user deposits ETH/stablecoin in Ethena, assuming a deposit of $100 USDT:
▹ Ethena uses the funds to buy $100 of ETH.
▹ Ethena minted USDe stablecoins equivalent to about 100 USDe worth of ETH purchased and sent it to the user.
So how will Ethena use your ETH next?
▹ A portion of the purchased ETH is staked in Lido, yielding an annual yield of 4-6%.
▹ The remaining ETH is transferred to a custodian that works with a centralized exchange.
▹ Ethena then finds the most efficient funding rate and executes the 1x short ETH perpetual contract off-chain through this escrow.
The final result is the Delta neutral strategy long and short double opening arbitrage
1) ETH deposited in Lido pool: Get stETH - (spot/long position + pledge annual interest rate)
2) On the exchange, they open a 1x “short” position on ETH perp, with the same collateral - (short + funding)
The protocol yield is generated from two sustainable exogenous sources that provide positive exposure to industry maturity and interest and diversify the risks associated with the yield sources.
Therefore, no matter how the price of ETH fluctuates, it will not be affected.
If the ETH price goes up, they make money on their stETH + funding position.
If the price of ETH drops, they can profit by shorting the perpetual + funding/staking APR.
So where do such huge profits come from?
As we discussed before, there are two ways:
1. Stake ETH on Lido in exchange for stETH - 4% annual yield
2. Funding rate – This is the main factor supporting such huge yields.
When minters provide assets in the process of minting USDe, Ethena Labs opens a corresponding short derivative position to hedge the Delta of the received assets.
Historically, participants who short this Delta exposure have earned positive funding rates and basis due to the mismatch in supply and demand for digital asset exposure.
While this yield is variable, on a volume-weighted basis it would be approximately 18% in 2021, approximately -0.6% in 2022, and approximately 7% in 2023.
The difference between ENA and LUNA
• USDe is fully collateralized by stETH, while UST has no collateral backing.
• Ethena uses established financial derivatives (short positions) to maintain the peg, rather than relying on arbitrage and minting/destruction mechanisms.
• USDe’s yield comes from real sources (staking yield and funding rate), not from unsustainable lending schemes.
The above features can prevent ENA from becoming the next LUNA
For more details, please refer to the official gitbook
https://ethena-labs.gitbook.io/ethena-labs/solution-overview/yield-explanation/historical-examples
😁After talking so much, how do you get ENA?💵
Official Airdrop
ENA has officially taken a snapshot of the Shards for the first season on the 26th. Deposits will now be counted towards the next season of confirmed airdrops. However, you can still get low-priced chips through Binance Launchpool and Mantle’s Shard program.
Binance Launchpool Event
Start time: April 2, 2024 8:00 AM UTC
End time: April 9, 2024 8:00 AM UTC
During the event, stake ENA or $USDT to share 15,000,000 $ENA!
way of participation:
Fdusd
Through Binance Launchpad
Stake Fdusd to participate
2. BNB (You can also stake on the Launchpad page, but I personally recommend you put it in the BNB income pool)
Staking BNB directly into the yield pool will receive launchpool and additional current yield rewards!
community activity
In addition to Launchpool, Binance also launched two activities for the community to participate in to get free chips.
Activity 1: Newbie Benefits🎁
Exclusive event for new users: total prize pool 200,000 ENA
Register through the KOL invitation link and deposit 200ENA (or 100USDT), and complete a transaction to earn 200ENA. Limited to the first 1,000 people, quota is limited, first come first served.
Old user rewards: total prize pool 100,000 ENA
Old users who deposit ≥200ENA during the event, or deposit 200USDT and purchase 200ENA, can earn 100ENA.
Also limited to the first 1,000 participants.
Invite link: https://accounts.binance.com/register?ref=CKR6ODUG
Activity 2: Creative Works Rewards🎁
Retweet this with#BinanceNewCoinENAand your creative work. $ENA analysis articles are best, memes and texts are also OK! In short, you can express yourself freely!
Participation method, Binance official push: https://x.com/binancezh/status/1773919634846363851?s=20
This is a good way for retail investors to participate with a low threshold, and it can also greatly promote the meme-based community consensus in the early stage. It is recommended that friends with artistic talent and good at doing things actively participate in this event, after all, there are 200 places available!
Some of the materials in this article come from ENA official and the Internet. If there are any errors, please contact me to correct them. In addition, I would like to thank Axel Bitblaze for providing some ideas
