Ethena: The Best Public Chain Synthetic Dollar Solution in the Encryption Ecosystem

Financial regulators and large banks do not want to see the success of Tether. As a full-reserve bank, Tether's business model is contrary to the monetary policy goals of the Federal Reserve. The Federal Reserve aims to reduce bank reserves to curb inflation, but the existence of Tether increases bank reserves. Additionally, as a major participant in the U.S. Treasury market, Tether's asset scale has grown large enough to potentially threaten market stability.

In comparison, Ethena is a synthetic dollar stablecoin project supported by cryptocurrency exchanges. It generates high-yield synthetic dollars USDe through ETH staking and perpetual contract hedging. The main risks of Ethena include exchange counterparty risk, smart contract risk, and limitations in the scale of the ETH futures market.

The advantages of Ethena are:

1. Pay most of the earnings to USDe holders to attract users to transfer from Tether and others.
2. Obtain investment support from major encryption exchanges
3. The incentive mechanism is consistent; the exchange hopes for Ethena's success.
4. Risks are more diversified and do not rely on traditional banking systems.

With the development of the cryptocurrency market, Ethena is expected to surpass Tether in the coming years to become the largest stablecoin issuer. Investors may consider purchasing Ethena's governance tokens to share in its future profits.

Ethena represents a synthetic dollar solution autonomously created by the encryption ecosystem, while Tether relies on the traditional financial system. The success of Ethena is crucial for the entire cryptocurrency ecosystem.