Andre Cronje Raises Concerns Over Ethena Labs’ USDe Stablecoin
Famend decentralized finance (DeFi) builder Andre Cronje has expressed considerations concerning the incentives behind Ethena Labs’ USDe stablecoin in a submit on X.
Cronje said, “Whereas issues are going nice now… finally that turns, funding turns into unfavourable, margin/collateral will get liquidated, and you’ve got an unbacked asset.” Though Cronje didn’t explicitly title Ethena Labs or USDe, his considerations had been evident concerning the steadiness and backing of the asset.
Ethena Labs’ USDe stablecoin yield initially raised considerations when it launched on the general public mainnet on February 19. On the time, it provided an annual share yield (APY) of 27.6%, considerably larger than the 20% yield of the failed TerraUSD (UST) on the Anchor protocol.
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