USDe shattered expectations in 2024, emerging as the largest decentralized stablecoin in circulation and a game changer for DeFi. Ethena’s founder, Guy Young, joins the show to reveal how the protocol surpassed long-established giants, generating billions in fees and setting new benchmarks for yield generation.

Guy also breaks down the mechanics behind Ethena’s innovative strategies, including “Aavethena,” a yield-boosting approach that’s changing how users interact with synthetic dollars. Plus, he addresses the risks: what happens when leverage goes too far, and how Ethena mitigates volatility at its core.

Will Ethena bridge DeFi and TradFi, leveraging the disconnect between crypto and traditional interest rates to tap into a $100 trillion fixed-income market?

Show highlights:

• Why Guy was surprised to see the rapid rise of USDe
• Why Guy is spending 80% of his time on bringing Ethena to TradFi
• The launch of Ethena’s UStb
• How regulation comes into play and the challenges in different jurisdictions
• Whether USDe could launch in the U.S. with a friendlier administration 
• Why Ethena hasn’t needed to utilize the reserve fund
• Why Guy believes Ethena has been able, at times, to surpass OG protocols like Ethereum and Uniswap in fees
• How USDe is being used across the board in DeFi applications 
• What the “Aavethena” strategy is and how it generates yield for users
• Whether USDe has brought considerable risks of liquidations
• How allowing Pendle’s PT tokens on Aave could supercharge growth
• How Ethena counters the centralization risks around exchanges
• Why Guy thinks that Ethena’s cross-chain strategy has been “pretty poor”
• How ENA has performed well despite airdrops not doing well in 2024
• Why Guy believes this bull cycle is different 
• Why he’s expecting USDe to reach at least $15 billion in 2025

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Guest:

• Guy Young, Founder of Ethena Labs
• Previous appearances on Unchained: 
• Ethena’s USDe Grew to $2 Billion in 7 Weeks. Is It Safe?
• How Ethena’s USDe Challenges Traditional Stablecoin Models

Links

• Unchained: Ethena’s USDe Becomes Third-Largest Stablecoin
• UStB announcement
• How BlackRock, the World's Largest Asset Manager, Took Crypto Mainstream
• Blockworks Research thread on how USDe is used
• Aavethena tweet by Guy Young
• “androlloyd’s” tweet on the level of exposure USDe has
• Unchained: Circuit Breakers: Is ERC-7265 the Solution dApps Were Waiting For?
• Seraphim’s tweet on the Ethena endgame

Timestmaps:

• 00:00 Intro
• 01:52 The rapid rise of USDe and what surprised Guy about its ascent
• 05:11 Ethena’s growth plans for 2025
• 07:36 Ethena’s role in launching UStb
• 11:52 Regulatory challenges across different regions
• 16:24 Could a U.S. launch for USDe happen with a friendlier administration?
• 20:56 Why Ethena’s reserve fund hasn’t been tapped yet
• 22:22 How Ethena surpassed OG protocols, including Ethereum, Uniswap, etc., in fees
• 25:14 USDe’s growing role in DeFi applications
• 27:17 The “Aavethena” strategy and how it generates yield
• 30:38 Risks of liquidations tied to USDe
• 33:48 Supercharging growth with Pendle’s PT tokens on Aave
• 36:15 How Ethena mitigates centralization risks with exchanges
• 40:39 Guy’s thoughts on Ethena’s cross-chain strategy struggles
• 43:19 Why ENA has performed well despite airdrop fatigue
• 48:42 Why this bull cycle feels different

52:44 Guy’s target for 2025

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