Despite market volatility caused by trade war threats from the White House, Ethena's synthetic stablecoin USDe has maintained its $1 peg. Unlike other stablecoins like Circle's USDC, USDe is not backed by fiat assets, but rather collateralizes stablecoins and utilizes a hedged cash-and-carry trade to stabilize its value. USDe also benefits from a positive funding rate and offers an APY of 10%, making it attractive to investors seeking stability and yield. Concerns about the size of Ethena's reserve fund for USDe have been addressed, as the fund has grown proportionately to the stablecoin's market cap. Chief investment officer of Maelstrom and co-founder of BitMEX, Arthur Hayes, has expressed confidence in USDe and has increased his exposure to the token.



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