Andre Cronje posted a question on his blog asking whether Ethena is the future of gaming. next UST.
Cronje compared Ethena to Ethena on X April 3 in a posting.USDe) to the infamous UST stablecoin.
“UST I had a high degree of confidence would fail, the simply mechanisms didn’t make sense to me, however, a lot of people I consider to be very smart were very vocal about how it can’t fail, this reached a point where I was convinced “”I was wrong.”
Cronje studied the perpetual contract, which is a derivative that allows traders the opportunity to make speculative bets on an asset’s price movement without actually owning the asset. Cronje emphasized a vulnerability that is critical to this system. It’s dependence on income producing assets like staked Ethereum The collateral is (stETH).
Cronje, by drawing parallels between USDe’s structural flaws and Terra’s fallout, is raising a warning about the sustainability complex financial Products that do not have transparent strategies for risk reduction.
Guy Young of Ethena Labs (also known by the name Leptokurtic), the founder, responded to Cronje with a statement that acknowledged Cronje’s concerns.
Ethena Labs has announced yesterday the launch of ENA as its new governance token and an expansion to its yield earning program. stablecoinSynthetic dollar USDe. In addition, Ethena launched An airdrop of up to 750 millions ENA.
The Shard Campaign offers free tokens to users who take part. The number of coins participants receive will be proportional to the ‘shards’ or points accumulated before April 1.
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Source: crypto.news