Ethena Founder Discusses Stablecoin Innovation and Crypto Market Trends

The founder and CEO of Ethena recently participated in an interview on the Hive Mind podcast, discussing the latest developments in the crypto market. He highlighted Ethena's USD asset project, which has a total scale of approximately $360 million, with cash accounting for as much as 72%.

Ethena's USD stablecoin annual yield reaches 18%, far exceeding competitors. The founder stated that Ethena captures the speculative premium in the derivatives market through basis trading strategies, providing users with high returns. He believes that as institutional funds flow in, the space for basis trading may narrow, but Ethena will maintain its competitive edge with efficient trade execution.

Regarding the recently passed Genius Act, the founder stated that it provides a clear regulatory framework for the stablecoin industry. Ethena is partnering with Anchorage to launch the USDTB stablecoin in compliance with the Act, while retaining USD products aimed at the global DeFi market. He believes that the US market has huge potential but fierce competition, and the offshore market remains Ethena's core growth engine.

The founder also expressed concerns about the high valuations of Layer 1 public chains, believing that the valuations of most L1 projects should be reduced to one-tenth of their current value. He predicts that the market in the future will favor application projects with real revenue and user bases.

Finally, the founder shared his views on the MEW project. Although MEW's market value has recently plummeted, he believes the team has the ability to turn the situation around through innovation, such as developing a social speculation platform or expanding high-profit product lines.

Overall, the founders remain optimistic about the crypto market, believing that clearer regulations and the entry of institutional funds will drive the industry towards a more mature direction.