#ENA $ENA #MKR，SNX $MKR #USDe #dai

The previous article mentioned the core role of ENA, but it is relatively abstract and seems to be very difficult for everyone to understand

I will open a separate article here to talk about it

First of all, everyone should understand the status of Suanwen in the currency circle, just like the aircraft engine is the pearl on the crown of industry, Suanwen is the pearl of the currency circle

Secondly, as long as there is a project that can add leverage to the market and has a certain scale, then this project will definitely be sought after by funds and is destined to take off

The most intuitive example is MKR and the stablecoin Dai it issued.

The core logic of leveraging the market is to buy Ethereum and Bitcoin, mortgage them to MKR, mint the stablecoin Dai, and then use Dai to continue to buy spot Ethereum and Bitcoin, and repeat this cycle, resulting in less and less spot in the market and rising prices.

But the disadvantages are also obvious. Only 80 Dai can be minted for 100U worth of Ethereum, which is similar to the concept of loss, resulting in the inability to keep leveraging funds. Unless the price keeps rising, the more leverage is cycled, the less funds can be used. Of course, this does not affect the price takeoff of MKR, and the market value has long dominated the top five 10

Back to ENA, for every 100 USDe minted, 50U worth of Ethereum spot will be bought in the market, and then 50U worth of short orders will be opened. The value is anchored, and the capital utilization rate is 100%. Buy 100U of Ethereum and lock it in ENA to take out 100USDe to continue buying, and repeat it over and over again. The leverage that can be added is N times that of MKR, and the capital utilization rate is extremely high

The extra money must have a source. The higher the leverage, the more short orders there are in the contract. However, since the contract price is greatly affected by the spot price, the spot quantity is limited, unlike the unlimited contract, so the larger the issuance of USDe, the higher the market leverage, and the market The more you buy Bitcoin and Ethereum spot, the more the price will rise, similar to the Fed printing money (unlimited) to buy gold (limited), directly stepping on the left foot and spiraling to the sky

In this round of bull market, the future rise of Bitcoin, ETF funds are the first contributor, and the second contributor ENA is indispensable

Of course, ENA will also contribute to the rise of Bitcoin at the beginning of the bear market, but what does it matter? I have already liquidated my position and ran away

ENA is destined to enter the top 20 of the market value rankings. If the market FOMO, it is not impossible to stroll around the top ten. Although the previous article estimated that ENA has a guaranteed 7U per unit, I will not sell it at this price anyway