DeFi Platform Ethena Launches with $287M Inflows, Promising 27% Yields from Staking and Shorting ETH Futures
• DeFi platform Ethena launched publicly this week and has attracted over $287M in inflows to mint USDe stablecoins yielding 27% APY
• Yield is generated by staking ETH (5% yield) and shorting ETH futures to capture high funding rates (est. above 20%)
• Concept of yield from shorting futures/cash and carry previously tried but failed when yields inverted and stablecoins lost peg
• Ethena believes its risk management and insurance fund can survive inverted yields, but some critics question this
• Over $50M minted on first day public; users deposit stablecoins like USDT to receive tokenized USDe dollars