The Defiant - DeFi Podcast

How USDe Pays The Highest Stablecoin Yield | Ethena Founder & CEO Guy Young

Mar 4, 2024

Founder of Ethena Labs discusses innovative stablecoin model USDe, off-exchange risks, ETH short positions, insurance fund, scalability, new collateral, depegged ETH, use cases, airdrop, biggest risk, success, and revenue potential in DeFi landscape.

01:07:10

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Episode guests

Guy Young

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Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Ethena offers a high-yield stablecoin 'USDe' with a novel decentralized savings option called 'Internet Bond'.

Ethena mitigates stablecoin risks by utilizing a crypto-native model, emphasizing yield incentives and addressing regulatory challenges.

Athena's mechanism redistributes yield based on staking, maintains scalability, and diversifies stablecoin risks, fostering innovation in the market.

Deep dives

Athena's Genesis and Core Changes

Athena Labs introduced a stablecoin with a high yield, attracting significant attention and capital. The founder, Guy Young, highlighted the journey from traditional finance to crypto and the inspiration behind Athena. They modified Arthur Hayes' concept, starting with State Ethereum as collateral over Bitcoin for better yield stability. To scale, they strategically accessed centralized exchanges but minimized exposure through off-exchange custodial solutions.

Introduction

5min

Evolution of Stablecoins and Decentralization in Crypto

25min

Risk Management of Negative Funding Rates for Short Positions and Rebalancing Strategy

6min

Yield Distribution and Scalability of Athena Stablecoin

12min

Exploring the Use Case for USC in DeFi and as an Investment Instrument

3min

Exploring the Role of Stablecoins in the Global Financial Landscape

8min

Exploring DeFi Activities and Risk Management in Shards Campaign

3min

Athena's Strategy for Stablecoin Success

5min

Guy Young is the founder and CEO of Ethena Labs, which is the entity behind Ethena, the synthetic dollar protocol built on Ethereum. Ethena also introduces a universally available dollar-linked savings option known as the 'Internet Bond'. Ethena introduces an innovative stablecoin model. Throughout our discussion, we thoroughly explore the mechanics and intricacies of Ethena, gaining a deeper understanding of its operation and the risks involved.

0:00 Intro

1:24 Guy Young's Background and Ethena Origin Story

5:33 How is USDe Different?

11:56 Off Exchange Provider Risks

20:23 ETH Short Positions

31:08 Insurance Fund

38:35 USDe Scalability

42:44 New Collateral

45:35 Staked ETH Depeg

48:48 Stablecoin / USDe Use Cases

57:33 Ethena Airdrop

1:00:00 Biggest Risk

1:02:42 Success for Ethena

1:05:40 Revenue

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The Defiant - DeFi Podcast

How USDe Pays The Highest Stablecoin Yield | Ethena Founder & CEO Guy Young

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Athena's Genesis and Core Changes

Improving Stablecoin Design and Risk Mitigation

Yield Redistribution, Funding Rates, and Scalability

Scalability and Growth of Derivative Markets

Use Cases and Future of USC and Stablecoins

Remember Everything You Learn from Podcasts