$ENA

Ethena's core innovation is USDe, a synthetic dollar that maintains its 1:1 peg to the US dollar through a "delta-neutral" hedging strategy. This involves using staked Ethereum (and potentially other assets like Bitcoin) as collateral and simultaneously opening equivalent short positions in derivatives markets to offset price volatility.

Synthetic pegging is tricky, but ENA at least is backing with real financial instruments and not algorithmic pricing like $LUNC did with disastrous consequences

#Stablecoins #defi #ENA #BinanceSquare

NOTE:

ENA is a governance token, so its price is not determined by the adoption of their products but the demand for greater voting power.

by MAAM_A1©