Andre Cronje Warns Ethena's USDe Stablecoin Could Share Fate of TerraUSD Due to Risky Structure

Andre Cronje questions if Ethena's stablecoin USDe could follow the same fate as TerraUSD due to its high-risk mechanics

Cronje is concerned about USDe's use of perpetual contracts and yield-based collateral, which he says introduces volatility

He draws parallels between USDe's reliance on market conditions and TerraUSD's collapse when conditions changed

Cronje argues that factors like negative funding rates could erode USDe's collateral backing over time

The skepticism highlights ongoing challenges in creating sustainable stablecoins in DeFi