Ethena, a decentralized finance (DeFi) platform, has recently launched its USDe tokens, which amassed over $287 million.
The introduction of this stablecoin to the public mainnet on February 19 caused crypto enthusiasts to voice their doubts about the promise of a 27.6% annual percentage yield (APY).
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Members of the community expressed their concerns about the yield being placed well above what was previously offered by similar models, which ultimately collapsed, leading to losses.
The co-founder of DefiLlama went on X to argue that high yield should not be the main point of concern; in fact, what is more worrying is a potential yield inversion.
Founder of The Daily Gwei, Anthony Sassano, also joined the online discussion to comment on the changing crypto community. He expressed feeling glad that so many people are questioning the high yield, signaling a positive development in people's approach to crypto.
Ethena's research lead, Conor Ryder, responded to critiques optimistically, highlighting the platform's reliance on substantial historical analysis that predicts sustained high demand for Ether shorting, framing negative funding rates as an integral part of Ethena's operational blueprint.
With $20 million allocated from a recent $14 million funding round to an insurance fund, Ryder reassures stakeholders of Ethena's preparedness to navigate the challenges of fluctuating funding rates, aiming to secure the platform's position in the DeFi ecosystem.
Nonetheless, the market cap of USDe has witnessed a substantial rise, underscoring the crypto community's hunger for high-yield opportunities, despite the shadows cast by past stablecoin failures.
Discussions in the crypto community were also buzzing after Joe Biden posted a meme often associated with bullish sentiments in the crypto world.
