After an Incredible 2024 for USDe, Ethena Plans to Supercharge Growth - Ep. 751

USDe shattered expectations in 2024, emerging as the largest decentralized stablecoin in circulation and a game changer for DeFi. Ethena’s founder, Guy Young, joins the show to reveal how the protocol surpassed long-established giants, generating billions in fees and setting new benchmarks for yield generation.
Guy also breaks down the mechanics behind Ethena’s innovative strategies, including “Aavethena,” a yield-boosting approach that’s changing how users interact with synthetic dollars. Plus, he addresses the risks: what happens when leverage goes too far, and how Ethena mitigates volatility at its core.
Will Ethena bridge DeFi and TradFi, leveraging the disconnect between crypto and traditional interest rates to tap into a $100 trillion fixed-income market?
Show highlights:

Why Guy was surprised to see the rapid rise of USDe

Why Guy is spending 80% of his time on bringing Ethena to TradFi

The launch of Ethena’s UStb

How regulation comes into play and the challenges in different jurisdictions

Whether USDe could launch in the U.S. with a friendlier administration

Why Ethena hasn’t needed to utilize the reserve fund

Why Guy believes Ethena has been able, at times, to surpass OG protocols like Ethereum and Uniswap in fees

How USDe is being used across the board in DeFi applications

What the “Aavethena” strategy is and how it generates yield for users

Whether USDe has brought considerable risks of liquidations

How allowing Pendle’s PT tokens on Aave could supercharge growth

How Ethena counters the centralization risks around exchanges

Why Guy thinks that Ethena’s cross-chain strategy has been “pretty poor”

How ENA has performed well despite airdrops not doing well in 2024

Why Guy believes this bull cycle is different

Why he’s expecting USDe to reach at least $15 billion in 2025

Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com
Thank you to our sponsors!

Polkadot

Robinhood & Arbitrum

Guest:

Guy Young, Founder of Ethena Labs

Previous appearances on Unchained:

Ethena’s USDe Grew to $2 Billion in 7 Weeks. Is It Safe?

How Ethena’s USDe Challenges Traditional Stablecoin Models

Links

Unchained: Ethena’s USDe Becomes Third-Largest Stablecoin

UStB announcement

How BlackRock, the World's Largest Asset Manager, Took Crypto Mainstream

Blockworks Research thread on how USDe is used

Aavethena tweet by Guy Young

“androlloyd’s” tweet on the level of exposure USDe has

Unchained: Circuit Breakers: Is ERC-7265 the Solution dApps Were Waiting For?

Seraphim’s tweet on the Ethena endgame

Timestmaps:

00:00 Intro

01:52 The rapid rise of USDe and what surprised Guy about its ascent

05:11 Ethena’s growth plans for 2025

07:36 Ethena’s role in launching UStb

11:52 Regulatory challenges across different regions

16:24 Could a U.S. launch for USDe happen with a friendlier administration?

20:56 Why Ethena’s reserve fund hasn’t been tapped yet

22:22 How Ethena surpassed OG protocols, including Ethereum, Uniswap, etc., in fees

25:14 USDe’s growing role in DeFi applications

27:17 The “Aavethena” strategy and how it generates yield

30:38 Risks of liquidations tied to USDe

33:48 Supercharging growth with Pendle’s PT tokens on Aave

36:15 How Ethena mitigates centralization risks with exchanges

40:39 Guy’s thoughts on Ethena’s cross-chain strategy struggles

43:19 Why ENA has performed well despite airdrop fatigue

48:42 Why this bull cycle feels different

52:44 Guy’s target for 2025
Learn more about your ad choices. Visit megaphone.fm/adchoices