The investor call today had three interesting gems:
1) @stablecoin_x plans to be a validator for the Ethena chain to earn more ENA
Makes sense. Hard to judge whether this makes money, and presumably not material.
2) Ethena Foundation will continue to sell discounted ENA to StablecoinX, so even if it is below NAV, it still is accretive to dilute
I found this striking. And kind of unsettling. The Foundation plans to make more sales below market value?
3) They’re marking the Locked ENA 1:1 vs ENA?
I hope this is a mistake. IFRS and GAAP usually require marking restricted units to a discount. Non-saleable units are NOT equivalent to freely tradeable units
Not mentioned in call, but if there are 15b ENA supply, and tons of it winds up inside a company where Ethena Foundation is the controlling shareholder, then… isn’t the Ethena Foundation ensuring it will unilaterally control Ethena? Why even do this vs SPAC buying Foundation?
If that’s how it shakes out, then this is some brilliant financial engineering by the Ethena team. I’m still not sure how this is a good deal for the investors unless they have equity interests in Ethena, too, though. There’s no obvious way to force a distribution to shareholders
I wouldn’t normally call this out, but the investor pitch deck makes a material misrepresentation here
1) @SkyEcosystem is the 3rd largest issuer on this @DefiLlama leaderboard
2) Ethena itself holds >90% of the USDtb supply. They’re double counting to just add USDe + USDtb
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