😀This morning, the OTC futures price of ENA suddenly reached an astonishing $3.5. As expected, adjustments followed. At present, the OTC futures price of ENA has quickly adjusted back to around $2.6. The huge pump and huge adjustment occurred before ENA was listed on Binance. Of course, the price we see is only a virtual pre-market price. The real price of ENABLE can only be seen after Binance opens on April 2.
What is ETHENA?
Since the concept is very complex, we don’t use blockchain language here, so I translated it into human language.
ETHENA just digs and digs in the small garden, planting big seeds and blooming big flowers.
Then our seed is ETH
ETH was planted as a seed in the soil of ETHENA. He performed a series of operations.
These operations include
😘1. Pledge ETH spot, that is, in the land of ETHENA, we accidentally joined the Proof-of-Stake, POS consensus algorithm. You must know that this is a sophisticated algorithm. Staking patients need 32 or an integral multiple of 32 ETH to participate in futures. The current price of Ethereum is as high as 3,500 US dollars, which means that at least 112,000 US dollars are needed to participate in the ETH staking game. But now the fertile land of ETHENA has perfectly solved this problem. I just checked and the income from this part is probably close to 3%.
😍2. The most important profit point on ETHENA is the funding rate. According to the report given by the official website, the funding rate for short positions of centralized exchanges OKX, Deribit, Bitget, Bybit, and Binance in the bull market exceeds 50 % of the time is positive, which gives the ETH short position enough room to profit. It can be understood here that ETHENA is going to be a hedge fund. In traditional hedge funds, the hedging targets are trading pairs with strong correlations. When one party in a trading pair rises rapidly, the hedge fund chooses to short it; at the same time, it goes long on the trading pair that rises more slowly. In this way, when the fast-growing trading pairs fall back and the slow-growing trading pairs rise, the hedge fund can make a profit. ETHENA holds spot ETH and pledges it in the POS algorithm, while shorting the ETH perpetual contract, thus achieving hedging between spot and contract. So for the hedge fund, we can understand it as buying a long position of "B-A" derived from the slow-growing currency B and the fast-growing currency A. In ETHENA, we can understand it as buying a long position of "ETH spot-ETH perpetual short order". The annualized bull market return for this part of the funding rate is about 20%.
🤑3. Basis trading income, this part is easy to understand as the difference income between spot and delivery futures contracts. The annualized rate of this part of income is about 0.5%. What is ENA: ENA is the governance token of the Ethena platform, distributed to core contributors 30%, investors 25%, foundations 15%, and ecological development 30%. 5% of the ecosystem is given to users through short selling.
ETHENA official website 💪Value of ENA: Total amount 15 billion, initial circulation 1.425 billion. Among them, 300 million are mined. Based on the just over-the-counter price of US$2.3, the circulating market value is US$3.27 billion. Based on this data calculation, it is expected to rank in the top 50 of Binance Exchange’s market capitalization rankings. Since OTC pre-market prices are often distorted, we can deduce that the price of ENA may be around US$0.4 1H after the opening after referring to the yield rates of recent Binance new coin mining periods. At the same time, referring to the performance of sub-new currencies from the end of December 2023 to the present, within one month after ENA is listed on Binance, the price may reach near the integer mark of 1 US dollar.
$ THIS
The figure below shows the profit and loss time ratio of ETHENA project funds, of which 89.2% is profit time and 10.8% is loss time.
