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+--- Thread: USDe "Synthetic Dollar" Launches Boasting 24%+ Annualized Yield (/showthread.php?tid=6264543)
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USDe "Synthetic Dollar" Launches Boasting 24%+ Annualized Yield - SUI-3183372 - Feb 23, 2024
Ethena has introduced the USDe stablecoin, as well as sUSDe, a yield-bearing version, after raising $14 million from top crypto funds and exchanges. USDe aims to achieve stability through backings of Ether and Ether derivatives, offering "a more decentralized" alternative to the likes of USDC and USDT. Staked USDe, called sUSDe, currently offers a 24% annual yield, drawing interest for its competitive returns.
Unlike other Ether-backed stablecoins which require over-collateralization, users can mint USDe with about $1 in Ether. Ethena claims to have effectively solved the over-collateralization requirement with a "novel design": It opens short derivatives positions on centralized exchanges to offset the long spot positions represented by users’ deposited assets.
The Web3 community argues that this approach is too risky and that USDe will destabilize, drawing parallels to the Terra UST implosion. Ethena Labs have responded by rebranding USDe as a "synthetic dollar" rather than a "stablecoin" (lol) and emphasize its difference from traditional fiat-backed stablecoins, highlighting its unique backing and yield mechanisms:
"Ethena’s USDe is not the same as a fiat stablecoin like USDC or USDT. USDe is a synthetic dollar, collateralized with crypto assets and corresponding short futures positions. This means that the risks involved are inherently different"
USDe currently sits at $420.5m TVL and sUSDe currently offers 24.04% APY.
Always interesting to see how these play out, hopefully this one doesn't thrust us into 2 years of negative price action like UST did.
Full disclosure I hold absolutely zero of everything mentioned in this topic, I'm just a curious onlooker waiting for the show to start.
RE: USDe "Synthetic Dollar" Launches Boasting 24%+ Annualized Yield - webdev77 - Feb 23, 2024
Zero chance that a 24% yield is sustainable. There are a grand total of zero forms of financial instruments that have maintained that over time.
RE: USDe "Synthetic Dollar" Launches Boasting 24%+ Annualized Yield - Yin Yang - Feb 23, 2024
Are these to attract users? Wouldn’t be surprised if they slash that rate in less than a month.
RE: USDe "Synthetic Dollar" Launches Boasting 24%+ Annualized Yield - Dirty - Feb 24, 2024
(Feb 23, 2024 02:16 PM)webdev77 Wrote: Zero chance that a 24% yield is sustainable. There are a grand total of zero forms of financial instruments that have maintained that over time.
I'm sonewhat surprised after the collapses over the last few years that coins are trying to shovel this bullshit again.
RE: USDe "Synthetic Dollar" Launches Boasting 24%+ Annualized Yield - LeetSpeed - Feb 24, 2024
(Feb 23, 2024 02:16 PM)webdev77 Wrote: Zero chance that a 24% yield is sustainable. There are a grand total of zero forms of financial instruments that have maintained that over time.
Most likely it will has some strings attached too. For example you must deposit $xxxx.xx amount.
RE: USDe "Synthetic Dollar" Launches Boasting 24%+ Annualized Yield - Kaleb - Feb 26, 2024
(Feb 24, 2024 02:26 PM)LeetSpeed Wrote: Most likely it will has some strings attached too. For example you must deposit $xxxx.xx amount.
That doesn't make it any more logical lmao, 24% APY is not real, it's not sustainable, and something will happen at some point.
RE: USDe "Synthetic Dollar" Launches Boasting 24%+ Annualized Yield - ___GS___ - Feb 26, 2024
Thanks for the share, Looks very interesting.
RE: USDe "Synthetic Dollar" Launches Boasting 24%+ Annualized Yield - Neal Caffrey - Feb 26, 2024
(Feb 26, 2024 04:22 AM)Goldsound Wrote: Thanks for the share, Looks very interesting.
dam i didnt know you were interested in stablecoins like ethena's usde, you must be really smart and handsome
RE: USDe "Synthetic Dollar" Launches Boasting 24%+ Annualized Yield - ___GS___ - Feb 26, 2024
(Feb 26, 2024 05:04 AM)Neal Caffrey Wrote: dam i didnt know you were interested in stablecoins like ethena's usde, you must be really smart and handsome
oh here we go, we got sir neal caffrey(HF). Please call it ponzi/scam project so it'll grow. 🤣
Crypto expert Neal CaffreyHF sir! 🤣
RE: USDe "Synthetic Dollar" Launches Boasting 24%+ Annualized Yield - Kaleb - Feb 26, 2024
(Feb 26, 2024 06:30 AM)Goldsound Wrote: oh here we go, we got sir neal caffrey(HF). Please call it ponzi/scam project so it'll grow. 🤣
Crypto expert Neal CaffreyHF sir! 🤣
I'm sure it'll take off like UST.
![[Image: 700a6e255a60c0eaaa18b4969529bb16.jpg]](https://i.pinimg.com/736x/70/0a/6e/700a6e255a60c0eaaa18b4969529bb16.jpg)
RE: USDe "Synthetic Dollar" Launches Boasting 24%+ Annualized Yield - Sudsy - Feb 26, 2024
I've said it before, anyone chasing these high yields are fools. It is not sustainable and it is just expensive marketing. It might be a hot take, but anyone who lost money on platforms like Celsius deserved it 100%.
Think about it though, if you knew how to consistently get 1% every year, everyone on Wall Street would line up around the corner to suck you off in hopes you dash a little of your magic on them. Now these random fucks none of us have ever heard of offer 24%? Lol good one
RE: USDe "Synthetic Dollar" Launches Boasting 24%+ Annualized Yield - SIM-1866423 - Feb 26, 2024
They are just like banks, want you to stake every stable coin during bull run so they can make tons of money while giving you tips.It is only sustainable during bull run.Just check history of $WAVES ...
Just close your eyes and put money into first coin you click you would make way more during bull run, lol.
RE: USDe "Synthetic Dollar" Launches Boasting 24%+ Annualized Yield - ___GS___ - Feb 27, 2024
(Feb 26, 2024 03:21 PM)Kaleb Wrote: I'm sure it'll take off like UST.
You are sure? lol who cares if you are so sure? If you are so sure then go make money?
Btw why USDD(Ponzi/scam/UST) still going good? it has been 2 years.
No one cares if you are sure or not. 🤣🤣
RE: USDe "Synthetic Dollar" Launches Boasting 24%+ Annualized Yield - Dirty - Feb 27, 2024
(Feb 27, 2024 01:26 AM)Goldsound Wrote: You are sure? lol who cares if you are so sure? If you are so sure then go make money?
Btw why USDD(Ponzi/scam/UST) still going good? it has been 2 years.
No one cares if you are sure or not. 🤣🤣
UST is going so well right now, its such a stable 0.03 USD for a stablecoin, it's practically as good as it gets.
RE: USDe "Synthetic Dollar" Launches Boasting 24%+ Annualized Yield - SUI-3183372 - Feb 27, 2024
Ethena began Phase Two of its airdrop / shard campaign today.
Ethena’s shard campaign is similar to points campaigns like those offered by EigenLayer, where the expectation is that shards will convert to Ethena governance tokens in the future.
USDe is backed by Ether and Ether derivatives, and can be minted with $1 in Ether, unlike other Ether-backed stablecoins, which require over-collateralization.
Phase One of the campaign, from February 19 to 26, saw the total circulating supply of USDe rise to over $453 million while offering stakers a 24% annual yield.
In the first phase, users earned a certain number of shards per day for staking USDe, buying and holding USDe, or providing USDe liquidity on decentralised exchange Curve Finance.
For Phase Two, Ethena is increasing the amount of USDe that can be locked to earn shards, adding a new Curve liquidity pool, and rewarding users for depositing USDe in yield trading market, Pendle.
Full disclosure I hold absolutely zero of everything mentioned in this topic, I'm just a curious onlooker waiting for the show to start.