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This week, Ethena was in the spotlight after the airdrop of ENA, its new governance token. Ethena’s flagship product, the “synthetic dollar” USDe has amassed a $2 billion market cap in less than two months. Meanwhile, ENA’s market capitalization sits around $1.4 billion, with a fully diluted valuation of $15.5 billion. 
In this episode, Guy Young, founder of Ethena Labs, discusses the risks associated with Ethena, including custodial risks and counterparty risks to exchanges. Young also talks about the use cases of Ethena's governance token, and discusses the potential for Ethena to be integrated with DeFi and CeFi.
Show highlights:

An introduction to what Ethena is and how USDe works

Why the team doesn't want to refer to USDe as a stablecoin, and prefers to use the term "synthetic dollar"

What the risks of USDe are, including custody, counterparties, and smart contracts

Why Guy is "pleased" with how the ENA airdrop went through

How ENA will be used and what its role will be in the governance of Ethena

Why Ethena is now onboarding Bitcoin as collateral

Why Guy thinks that there's been an "exaggeration" regarding the situation with Maker and Aave

Guy's response to the critics who say that Ethena is essentially Terra/Luna

Whether USDe would only work in a bull market

How the Ethena insurance fund works and what it aims to accomplish

What's next for Ethena after onboarding Bitcoin, with Solana potentially being the next asset

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Guest


Guy Young, founder of Ethena Labs. 

Previous appearance on Unchained: How Ethena's USDe Challenges Traditional Stablecoin Models


Links
Ethena: 

Unchained: What Is Ethena’s USDe Synethic Dollar? A Beginner’s Guide


Decrypt: Ethena Just Launched to a $1.2 Billion Market Cap: Here’s What You Need to Know 



Dust on Crust by Arthur Hayes

Airdrop:

Unchained: Airdrops From Wormhole and Ethena Labs Set to Inject $2.4 Billion Into Crypto Market This Week 


Cointelegraph: Ethena will become highest revenue-generating crypto project — Delphi Labs CEO



ENA Airdrop and Season 2: Sats Campaign 

Learn more: What Is a Crypto Airdrop? A Beginner’s Guide


MakerDAO/Aave controversy: 

The Block: MakerDAO proposes allocating $600 million worth of DAI into USDe and sUSDe


The Defiant: DeFi Projects Clash After MakerDAO Adds Ethena’s USDe As Collateral, 

Comparisons to Terra’s UST: 

The Defiant: Ethena Stablecoin’s 27% Yield is Triggering Terra-Induced PTSD


Andre Cronje’s thoughts on USDe

Cointelegraph: Ethena Labs founder clarifies USDe stability amid high yield worries



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