The Rise of Ethena: A New Era for Decentralized Finance?

"Believe it or not but ethena could generate the most revenue of any crypto project ever."

"with over $2.5 billion of collateral this works out to protocol revenues of over $200 million per year which is quite frankly nuts and the craziest part is that Athena's protocol Revenue will rise as the crypto Market starts to rally"

"consider that long fees were generating yields as high as 40% in March and this means that Athena could earn billions of dollars in protocol revenue between now and the end of next year"

"Ena could theoretically grow up to 50% more than the crypto it's using as collateral in percentage terms and this is because the amount of Leverage in crypto grows anywhere from 30 to 50% more than the market cap of crypto in a bull market"

"Luna grew to a market cap of $40 billion so that could mean a 40x for Ena or probably closer to 30X if you factor in all of the vesting"

"On the def5 front Athena hopes its usde stable coin will become dominant in fact Athena's own documentation seems to strongly hint at the fact that it's looking to disrupt usdc dominance in defi"

"Bibit has already added usde as collateral for leveraged trading"

"it's likely to add additional cryptos as collateral if their Futures markets become big enough uh you might remember me of course mentioning how Athena will soon be adding soul for this reason"

"The one risk that everyone seems to have missed however is that Athena is like likely to incentivize unprecedented levels of Leverage on exchanges and elsewhere"

"all the while the corresponding shorts for this stable coin collateral are keeping long fees artificially low across the bulk of the Futures Market which you'll recall primarily uses stable coins like usdt as collateral and this makes it possible for an artificially large number of long positions to open on exchanges"

"we don't know what could happen because of this all we know is that Athena will inevitably incentivize an unsustainable amount of stable coin backed long positions due to the inevitable use of stable coins as the primary form of collateral in Athena"

"we all know what happens when you have large Futures open interest melt ups and meltdowns add an excessive leverage to a market already so volatile could be a risk more generally"

"solid enough for usde to challenge the big boys of the stable coin space"