🧵 Protocol of the Day: @ethena_labs
Ethena is a synthetic dollar protocol that issues USDe, a censorship-resistant, yield-bearing stablecoin backed by staked ETH and hedged derivatives.
✅ Pros:
• Top 1% by TVL with >$7.7B in assets
• Dual-yield model from ETH staking and funding rates
• Fully audited, with no hacks since launch
⚠️ Risks:
• Negative funding rates – Prolonged downturns in perp markets can cause losses and erode yield
• CEX dependency – Relying on centralized exchanges for hedging exposes users to censorship and counterparty risk
• Redemption delay – 7-day cooldown on sUSDe exits could trap capital in volatile conditions
Want to learn more about how Ethena works and whether it’s right for your strategy?
We break down how it earns yield, its risks, key metrics, and how you can participate:
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