Hot take: Plasma is quietly very bad for Tether.
Plasma's 9 figure incentive budget lures USDT into lending platforms like Aave.
Loopers borrow that USDT at low rates and swap it for Ethena's USDe or sUSDe. In size and time, these swaps lead to redemptions of USDT.
Ethena stablecoin reserve is largely made up of USDTB and now PYUSD, overtime its been less and less USDT.
When plasma wins (pulling in more USDT), it accelerates the USDT to (s)USDe conversions, draining Tether's overall float (and revenue).
Tether’s USDT remains a juggernaut and its growth is the most impressive chart in crypto. That said my hot take is Plasma's more bullish for ENA than Tether.
@litocoen with those USDTB and PYUSD positions up only..
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