Engineering the Dollar from ETH and Perpetuals, with Ethena Labs founder Guy Young

The Fintech Blueprint

Lex chats with Guy Young - the CEO and Founder of Ethena Labs, the crypto infrastructure company building USDe which is the first-ever scalable stablecoin not reliant on existing banking institutions alongside a permissionless 'internet bond'. They discuss Ethena, a new protocol for the synthetic dollar, and the market dynamics around Ethereum and the concept of the internet bond. Young explains his background in distressed investing and the risks and mistakes commonly seen in financial services. They also delve into the mechanics of the perpetuals market and the funding rates, as well as the scalability and risks associated with Ethena. Young highlights the potential for the synthetic dollar to replace bonds in traditional bank accounts and the value of a crypto-native solution with different risk profiles.

MENTIONED IN THE CONVERSATION

Ethena's Website: https://bit.ly/3MDR1Td

Guy's LinkedIn profile: https://bit.ly/46gDDM4

Topics: crypto, blockchain, defi, ethereum, perpetual swaps, stablecoin, synthetic dollar, steth, usde

Companies: Ethena Labs, Ethena, Cerberus, BitGet, Binance, ByBit

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TIMESTAMPS

1’20”: Strategic Investments: Distressed Assets and Value Opportunities in Financial Services

4’19”: Analyzing Collapse: The Underlying Mistakes Leading to Financial Institution Failures

6’22”: Market Missteps and Innovation: The Human Element in Financial Risks and the Allure of Crypto Markets

9’37”: Decoding Value and Innovation: The Dynamics of Ethereum Economics and the Future of DeFi Tokens

16’40”: Balancing Returns and Risks: Understanding Ethereum's Capital Market Structure and the Role of Perpetual Swaps

21’47”: Synthetic Leverage in Crypto Markets: Analyzing the Persistent Tilt in Funding Rates and the $30 Trillion Perpetuals Phenomenon

25’26”: Strategic Hedging with ETH: Understanding the Perpetual Market Mechanics and Identifying the Risks

28’30”: Exchange Relations and Risk Mitigation: Balancing Volume and Counterparty Exposure in Perpetual Markets

31’42”: Impact of Scale on Ether: Assessing the Price Dynamics of Synthetic Assets and Their Influence on the Underlying Market

36’23”: Exploring Synthetic Stability: The Mechanics of Crypto-Native Dollars and the Potential for Traditional Market Integration

40’50”: The channels used to connect with Guy & learn more about Ethena

Disclaimer here — this newsletter does not provide investment advice and represents solely the views and opinions of FINTECH BLUEPRINT LTD.

Contributors: Lex, Laurence, Matt, Farhad, Mike, Daniella

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