Guy Young, the founder of Ethena, rejoins the show to give us an update on Ethena and to discuss the nature of crypto interest rates.

In this episode:

• Reflections on the Ethena launch
• ETH funding rates versus ETH ETF expectations
• Funding rates on crypto native exchanges versus CME
• Why Ethena versus doing the cash and carry trade
• At what point does Ethena start to drive down funding rates
• The history of the cash and carry trade in crypto
• Did yield farming represent a real form of yield?
• Why is yield farming less viable today?
• The ultimate convergence between tradfi and crypto yields
• Where risk premia come from for Ethena versus the risk free rate
• ETH taking yields and their development
• Guy’s concerns about Eigenlayer and its effect on DeFi
• Interactions between real rates and crypto rates
• Stablecoin supply versus tradfi interest rates
• Crypto yields versus RWA supply
• The share of stablecoins that is speculative in nature
• Guy’s expectations for the medium term future of crypto rates