Recommend a 10x coin: ENA bottom pick point 0.68
Will ENA's death spiral begin? This is one of the hot topics recently. When I was doing research on the ENA project, I mentioned that this is a currency with extremely polarized potential. Today, I will explain in detail the economic model of ENA and its potential investment opportunities.
ENA's economic model
ENA's economic model is relatively simple, mainly relying on the arbitrage mechanism to profit from the funding rate. In order to make you understand better, let me explain it briefly.
Perpetual contracts have a mechanism to keep the contract price consistent with the spot price. When long orders (buy contracts) are greater than short orders (sell contracts), longs need to pay funding fees to shorts; conversely, when shorts are greater than longs, shorts need to pay funding fees to longs.