Despite the significant success of the Ethena (ENA) crypto project, the majority of the experts raised concerns over the yield system of this protocol which is higher than TerraUSD.
Ethena (ENA) cryptocurrency is a new crypto project in this industry which aims to replicate a common hedge-fund trade that is attracting billions of dollars worth of tokens and widespread buzz in the market. Ethena Labs is a decentralised protocol centred on the yield-bearing USDe stablecoin. This project team itself calls it a synthetic stablecoin which remains pegged to the value of $1 always.
The current trade price of ENA is $1.44 & this trade price is 53% higher over the last 7 days.
Since the launch, the trade price of this cryptocurrency has been increasing rapidly, probably because of the high yield system of the USDe staking concept.
People can easily mint USDe stablecoin for the exchange of USDT or USDC stablecoin. Further, staking of USDe yields a reward of 37% per annum.
Notably total value locked (TVL) on the protocol surged to $2.3 billion from $178 million – a 12-fold increase in just 60 days.
The surging popularity of this project grabbed the attention of top experts. Some people compared this project with the failed crypto project TerraUSD.
According to some experts, the concept of USDe stablecoin is very similar to TerraUSD stablecoin and labelled this stablecoin a very highly risky crypto project.
It is worth it to note that the yield for TerraUSD stablecoin staking was 20% per annum and in the case of USDe is 37%. That means risk possibilities in the case of USDe are very high.
Folkvang founder Mike van Rossum shared his thoughts on this concept and called the trading system safe but raised problems with exchanges where positions and collateral are managed, as well as challenges in executing large trades in highly volatile markets.
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