Deep Digging: Ethena (ENA), a money-making machine in the crypto world, ENA is worth holding for the long term! (Investment Research Report)

Let’s talk about the conclusion first: After the investment and research, Ethena is a platform that can make money, can make money, and has been successfully implemented to make money. Its token (ENA) is worth owning.

A fierce warrior and an iron horse, capable of swallowing thousands of miles like a tiger! !

Preface: How much money does Ethena make?
Ethena’s daily revenue in the past week reached US$6.8 million, 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.

1. What is #Ethena?
A synthetic dollar protocol built on Ethereum, using ETH as the underlying asset. USDe is a synthetic dollar protocol on the Ethereum chain, using#ETHas the underlying asset. It is composed of short collateral of spot ETH and futures ETH, and the two are hedged to become a delta-neutral stable asset. Even if the price of ETH fluctuates, the value of USDe’s minting and staking is virtually unaffected, ensuring the stability and reliability of the asset.

In layman's terms: No matter whether ETH goes up or down,#USDecan maintain its value stability. You can think of it as the Ethereum version of USDT. You can think of it as holding ETH spot and shorting hedging, mortgaging and issuing $USDe, a currency that prevents crashes and ensures stability.

2. What is the operating logic of Ethena’s money-making?
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 will be transferred to custody institutions such as #Copper, #CEFFU, and #Cobo. This will avoid troubles such as asset misappropriation or CEX explosion.

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:

a/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.

b/ 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%.

3. What is Ethena’s background?

1/Ethena closes $20.5M 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#MakerDAOfounder#Runealso mint 5.66 million USDT into USDe through his personal address yesterday (30th)

4. What are the 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/ Security risks at the pledge level. Whether the security and sustainability of the pledge nodes can be guaranteed;

2/ It is the security risk of the futures contract opening platform, whether it is DEX or CEX, there is the risk of hacker attack;

3/ It is contract availability risk. Sometimes there may not be enough liquidity to conduct short selling;

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.

5. About#ENAprice 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/ Reference to the transaction price of OTC platforms (such as aevo, etc.): $0.65;

2/Based on 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 recent#Ethenarevenue, Ethena’s annual revenue will reach $330 million.

Although the road is long, you will reach it if you go; although the task is difficult, you will achieve it if you do it.

Incomprehensible SOL conclusion: Generally speaking, Ethena is a platform that can make money, can make money, and has been successfully implemented to make money. His token (ENA) deserves attention. The field of liquid pledged derivatives LSD is developing rapidly. ,especially #LSD New innovations are about to emerge in the stablecoin space. I believe that driven by the rise of Ethereum after the Cancun upgrade, stablecoins will also usher in a wave of craze, let us wait and see.

#ENA #USDE #ETHENALAUNCHPOOL