Ethena Labs Divides Opinion as High Yield Stirs Memories of Terra

In contrast to asset-backed stablecoins like tether (USDT) and USDC, whose worth is secured in opposition to {dollars} or dollar-equivalents resembling U.S. authorities debt, USDe calls itself an artificial stablecoin with its $1 worth maintained by means of a monetary method generally known as the cash-and-carry commerce. The commerce, which includes shopping for an asset and concurrently shorting a by-product of the asset to gather the funding charge, or the distinction between the 2 costs, is well-known in conventional finance and does not carry directional, or delta, threat.