#ENA $ENA

The previous articles talked about ENA's narrative logic and valuation. Interested readers who haven't read them can go to my homepage to check them out. In this article, I will briefly talk about the impact of ENA on the cryptocurrency circle.

Exchanges

If stablecoins want to be successful, they cannot do without the support of centralized exchanges. The project team has pulled in major exchanges in the cryptocurrency circle and half-sold and half-given away a lot of cheap chips. The exchanges have a lot of ENA in their hands, so they naturally want to make the plate, so as to maximize their profits, and this The project is very friendly to exchanges. Once the issuance of stablecoins increases, there will be a lot of corresponding short positions. Frequent opening and closing of positions during the minting process are all handling fees. Moreover, when there are more short positions, when the market's counterparty is balanced, the contract market rate will make bulls more willing to open contracts, and the exchange will still benefit.

Market Makers

Market makers in the currency circle are roughly equivalent to dog dealers. ENA has brought several market makers at the top of the currency circle on board, half selling and half giving away a wave of cheap chips. What reason do market makers have not to expand the plate and increase the market value to facilitate their own shipments and make a lot of money? With high trading volume, market makers can also make money by arbitrage

Project Party

Here I have to say that the initiator of ENA is the same person who invented the perpetual contract. It is the perpetual contract he invented that has ruined many people. The price has not changed, but the position is gone.

But correspondingly, the success of the corresponding perpetual contract is obvious to all. ENA is a project derived from the contract. It is only a matter of time before it is done. The founder is still shouting on Twitter that ENA is 10$ (I am open, you can do whatever you want)

Market

Leverage the market, lock a lot of spot in the process of minting stablecoins, less market selling pressure and easier to pull the market, increase the depth of the contract short order, bulls are happy, how much less funding rate they have to pay every year, and the interest rate of stablecoins is also very high. People who like risk-free returns are blessed

Some people make money and some people lose money. Everyone makes money, so who loses money?

Of course, it is the people who are shorting and doing arbitrage on funding rates. The pie is so small that ENA came out and took a piece of it.

Finally, ENA will not explode in a bull market. Once the market turns bearish, please do not hold a USDE. You are looking for interest, but be careful that your principal will not be protected. As for whether this model will be unpegged or even collapse, let the next bear market test it.