$ENA One-week drawdown more than 50%
The first few weeks only just announced a buyback boost, and now there’s new news again—something big is coming?
Previously, we discussed that Ethena uses cryptocurrencies and stablecoins as underlying assets,
while also trading perps to short—hedging out price volatility—and then issuing USDe.
Especially in bull markets, when everyone is going crazy longing,
Ethena shorts for hedging and also captures a round of funding fees.
Now, Ethena has joined Binance’s bStocks using the same concept,
earning funding rates and the basis from contracts.
It expands its own arbitrage range—from original cryptocurrencies to tokenized stocks.
In the past 6 months, bStocks has averaged an annualized return of over 11%.
And over the last 3 months, open positions have been growing by an average of 30% each month.
Binance will also lower Ethena’s ADL priority.
What does that mean?
It means that in extreme market conditions, it’s less likely to be the one automatically reduced,
reducing the risk that the hedging position suddenly disappears during extreme swings.
Now that RWA no longer satisfies the need to put US stocks on-chain,
directly using tokenized stocks as collateral for stablecoins.
Back to Ethena.
Earlier, we also raised a question: when a bear market comes and funding rates aren’t as high,
what does Ethena do?
Ethena has a very good answer.
Now Ethena is no longer relying solely on funding rates from the crypto market.
With the addition of tokenized US stocks, it gains another revenue stream,
which—more or less—reduces dependence on crypto-market funding fees and lets it ride through the bull-and-bear cycle.
The first few weeks only just announced a buyback boost, and now there’s new news again—something big is coming?
Previously, we discussed that Ethena uses cryptocurrencies and stablecoins as underlying assets,
while also trading perps to short—hedging out price volatility—and then issuing USDe.
Especially in bull markets, when everyone is going crazy longing,
Ethena shorts for hedging and also captures a round of funding fees.
Now, Ethena has joined Binance’s bStocks using the same concept,
earning funding rates and the basis from contracts.
It expands its own arbitrage range—from original cryptocurrencies to tokenized stocks.
In the past 6 months, bStocks has averaged an annualized return of over 11%.
And over the last 3 months, open positions have been growing by an average of 30% each month.
Binance will also lower Ethena’s ADL priority.
What does that mean?
It means that in extreme market conditions, it’s less likely to be the one automatically reduced,
reducing the risk that the hedging position suddenly disappears during extreme swings.
Now that RWA no longer satisfies the need to put US stocks on-chain,
directly using tokenized stocks as collateral for stablecoins.
Back to Ethena.
Earlier, we also raised a question: when a bear market comes and funding rates aren’t as high,
what does Ethena do?
Ethena has a very good answer.
Now Ethena is no longer relying solely on funding rates from the crypto market.
With the addition of tokenized US stocks, it gains another revenue stream,
which—more or less—reduces dependence on crypto-market funding fees and lets it ride through the bull-and-bear cycle.