How Ethena's USDe Challenges Traditional Stablecoin Models

Ethena's Guy Young explains the innovative mechanics behind USDe, a stablecoin that combines Ethereum's yield with a unique hedging strategy.

In this episode of Unchained Premium, Laura talks with Guy Young, the founder and CEO of Ethena, to discuss their innovative stablecoin, USDe. Young provides a deep dive into the unique mechanics of USDe, explaining how it leverages Ethereum's inherent yield and a unique hedging strategy to create a stablecoin that challenges traditional models.

Show highlights:

• how Arthur Hayes' article inspired the creation of Ethena Labs

• what type of stablecoin Ethena's USDe is and how it is backed

• whether the hedging infrastructure for the collateralization of the stablecoin is centralized 

• why 'centralized liquidity' is necessary, according to Guy

• which companies are Ethena's custody partners

• what the risks are of implementing this new strategy for backing a stablecoin

• why Ethena's team decided to back the stablecoin with ETH rather than BTC

• how would a user mint USDe and what types of assets they could deposit

For those who are not Premium subscribers yet, here’s a sneak peek 👁️

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What is a behind-the-scenes interview?

Behind-the-scenes interviews have long been part of my journalistic process. With only 100 episodes of Unchained slots per year, it's impossible to fit every project, creator, or builder into the editorial calendar. However, I love to learn about the latest developments in crypto, so I usually conduct a few such interviews per month with projects who I might want to have on an episode.

These chats usually last 30 minutes and I rarely do much research or write questions for them -- so get ready for tons of straightforward questions and more banter than you might find in an Unchained episode.

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