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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