After publishing a sober assessment of $ENA’s sustainability yesterday, some people reached out about taking it down. I never like to talk negatively about others' products and think highly of any team or individual who have built, or are constantly trying to build, useful things in our space. Capital efficiency is a good-to-have feature for sure. But I do think the problems I pointed out around securities and the stability of the peg are VERY LEGITIMATE CONCERNS. Stablecoin security is such a sensitive issue because it started the 2022 bear market with $LUNA's collapse and took multiple hedge funds and many VC firms and individuals' hard-earned reputation down with it. I felt it's necessary to at least point out things that could go wrong with the current model and the lurking risk around centralized and active management risk, especially the risk around the pacing of opening and closing of delta-neutral positions. I do think the Ethena team is capable and is aware of the risk here. For example, if there's a huge inflow of deposits when the funding rate is lower than normal, the team should hold on to opening positions. This is because if the funding rate returns to normal level or goes up like the past weekend, those positions would be insolvent if closed at higher funding fee levels. I also think it's important to confine collaterals only to well battle-tested exchanges and open both legs on the same exchanges. The perp dex <> cex arb should be done with outside capital to bring the water over, instead of directly opening the positions on separate exchanges with users' funds. Letting any capital to tap into the cost of leverage in the market is a brilliant idea and is definitely the direction our space and the broader world is going towards. Cash-carry trade / market risk-free rate should be productionized into bonds, and Ethena has definitely taken the lead to build and distribute good products in the space. At @SupernovaXHQ, we are standing on the shoulders of giants and taking a more autonomous, market-driven approach with clean risk compartmentalization between Bond and Cash - which first leads to better security, and subsequently also leads to higher yield due to capital efficiency. After posting the piece, a few founders with large treasuries reached out to learn more about Bond Protocol. There's clearly demand for fixed-yield and for products with better risk compartmentalization. Two talented individuals also reached out to learn more about opportunities at Supernova. We are very excited about the all-star team, the direction, and the competitive product we are offering to the market. Again, our priorities always go in the following order: security, liquidity, yield.