Ethena's Fully-Collateralized Stablecoin Offers High Yields, But Bears Risks If Yields Dry Up

• Ethena Labs' USDe stablecoin offers high yield through a cash-and-carry trade, sparking comparisons to failed Terra ecosystem

• Critics cite counterparty risk and potential funding rate reversal as main threats to stability

• Ethena founder argues comparisons to Terra are "weak" since USDe is fully collateralized, not algorithmic

• Bear market could dry up yield source, though Ethena open to changing yield strategy if needed

• Crypto whales undeterred so far, with $51M Ethena governance tokens withdrawn from exchanges in one week