Ted Chen

I'm excited to announce that with $TLGYF's shareholder vote scheduled for today, @stablecoin_x, the $ENA treasury company for @ethena, will be publicly listed soon under the ticker $USDE. All $TLGYF public shares will be automatically converted on a 1-for-1 basis at closing. I've been asked many times "Why Ethena" and thought I'd share my personal views below. The TLDR is that $ENA is truly a generational asset that is worth, in our view, north of $0.70 today, multiples of where it trades currently. Key to our view is the belief that the tokenization of assets will drive $USDe adoption to $100 - $350 billion by 2030, leading Ethena to become one of the few crypto projects that reach multi-billion dollar annual revenue scale. Excited to partner with @gdog97_ and the rest of the Ethena team, and looking forward to sharing more as we get to closing.

Rob nails it: FX is the world's largest market, and stablecoins are disrupting it. Interestingly, in TradFi, FX derivatives trade almost twice the volume of spot FX. It will be fascinating to watch this on-chain derivative market develop, especially with @ethena's $USDe potentially serving as highly efficient collateral in liquidity pools, which could help drive lower FX rates on-chain than off-chain. $ENA

7/7 - Important disclosures - For additional information regarding TLGY, SC Assets, StablecoinX and the business combination, please see the definitive proxy statement/prospectus filed by StablecoinX with the SEC.

6/7 - Excited for what’s in store for @ethena, and for @stablecoin_x as one of the largest $ENA tokenholders post @TLGYAcq merger closing.

1/7 - @ethena’s integration of $USDe with @WalletConnect Pay 👇 is huge and has the potential to drive significant value to $ENA.

In a related matter, it’s also the reason why @ethena’s sUSDe unstaking cooldown period is transitioning to a dynamic model.  Wouldn’t it be great if CEXs had a dynamic collateral haircut model for $USDe too? 🤔

TLDR: While sUSDe’s APY may temporarily be less differentiated from fiat-backed stables today, its risk profile is also substantially more similar to a diversified pool of them. This is not a defect but an intentional design.

But it is exactly during these periods where funding rates don’t cut it that USDe backing sits primarily in liquid stables (~90% today per @ethena’s transparency page)

Common misunderstanding about $USDe risk profile is whether you are getting the appropriate return when sUSDe APY is down at today’s levels.

🥧

The job description in notes there are two major products on the horizon. One may have been @hyenatrade. The other 🤷‍♂️ But yes, excited to see what’s cooking at @ethena in 2026. $ENA 📈

Stay tuned...

To my TradFi brethren: A solid read 👇 if you want to understand where tokenization sits today and where it’s heading. Tokenization 📈 = $USDe 📈 = $ENA 📈

Today, we are proud to announce Multicoin Capital liquid fund’s investment in ENA, the native token for Ethena Protocol, the issuer of USDe, the leading synthetic dollar. Synthetic Dollars aim to generate yield and create stability by executing fully-collateralized delta-neutral trading strategies in financial markets. Ethena generates yield by monetizing the market’s demand for leverage via basis trade. The most exciting thing about Ethena for us is that it sits at the intersection of three powerful trends reshaping modern finance: stablecoins, perpification, and tokenization. 1. Stablecoins a) Ethena is the only synthetic dollar to have achieved meaningful distribution and liquidity outside of USDC and USDT. b) The true test of a synthetic dollar’s adoption is its acceptance as collateral on major exchanges. Ethena has succeeded in integrating USDe as a core form of collateral on major centralized exchanges like Binance and Bybit. c) Another unique aspect of Ethena's strategy is its mild negative correlation with Fed Funds rates. As rates fall demand for leverage in crypto generally increases leading to higher funding rates. We have seen a version of this playout in 2021 when the spread between funding rates and treasury rates widened beyond 10%. (chart below) d) Since inception, the protocol has generated close to $600 million in revenue — with over $450 million of that produced in just the past twelve months. 2. Perpification of Tokenized Equities & Fintechs distributing them to masses a) Perps are a big market in crypto. In a roughly $4 trillion asset class that is crypto, perpetual contracts trade more than $100 billion per day with an open interest of more than $100B across CEX and DEX. b) The global equity market is worth around $100 trillion — nearly 25 times larger than the entire crypto market. The US equity market alone is worth around $60 trillion. c) Just like in crypto, there is strong demand for leverage among equity market participants. This is evident in the explosive growth of 0DTE (zero-day-to-expiry) options, which are mostly traded by retail investors and account for over 50% of SPX options volume. d) Perpetuals are much easier for most investors to understand than options. We don’t expect perpetuals to replace the 0DTE options market, but they could capture significant market share. e) As crypto regulations turn more favorable, fintechs around the world should increasingly embrace crypto. Today, most non-crypto-native users can only access a limited set of crypto assets, and only in spot form. We believe this group represents significant untapped demand for leverage. f) We believe, as fintechs adopt crypto perpetuals, they will create a new distribution channel for these products, driving higher trading volumes and open interest, which in turn will expand the capacity and scalability of the basis trade that supports Ethena. 3. Tokenization a) Today, access to hedge funds that have the infrastructure to do basis trades at scale is reserved for accredited investors and qualified institutional purchasers. Crypto is rebuilding the financial system from the ground up, making such opportunities accessible to everyone through tokenization. b) In traditional finance, the closest parallel to tokenization is the ETF. Today, there are more ETFs than publicly listed single stocks in the U.S. ETFs package complex strategies into a single, tradable ticker that investors can easily buy, sell, or hold — without worrying about execution or rebalancing. c) Ethena is starting by tokenizing the basis trade — but there’s nothing stopping Ethena from diversifying its yield sources over time. Separately, the team has shown strong execution and risk management culture, and there is a line of sight to value capture for the ENA token. Team, Risk Management and Value Capture a) In our experience, Guy has proven to be one of the sharpest and most strategic thinkers in DeFi. The following quote stands out about his conviction in what he is building. “I quit my job to build Ethena a few days after Luna collapsed and hired the team a couple of months post-FTX.” – Guy Young, the founder of Ethena. b) They have survived the largest hack, Bybit $1.4B and the largest deleveraging event, October 10 crash, in the same year, and did not lose a single dollar. That is a testament to their risk management ethos, which in my opinion are probably the most important factor in running basis trade. c) There is a line of sight between now and fee switch activation and we believe that would be viewed favorably by the market. Conclusion To conclude, we believe that the opportunity for synthetic dollars is massive. Ethena sits at the intersection of the three largest forces shaping the financial markets: stablecoins, perpification and tokenization, each of which is a source of compounding for Ethena. They have demonstrated competence in risk management and there is a line of sight to value capture. We are excited to be in for the ride.

@gametheorizing honest question but where do fiat stablecoins fit on your risk-return efficient frontier? They have counterparty risk too (SVB says hi). And at 0% yield (or treasuries-4% by your framing), you're not just unpaid for that risk, you're effectively paying to hold it.