Developer Andre Cronje recently raised concerns about Ethena potentially becoming the next UST stablecoin. In a post on X, Cronje compared Ethena (USDe) to the infamous UST stablecoin. He highlighted structural vulnerabilities in perpetual contracts, specifically the reliance on income-generating assets like staked Ethereum (stETH) as collateral. This analysis has led to questions about the sustainability of complex financial products without transparent risk mitigation strategies.

Ethena Labs founder, Guy Young, also known as Leptokurtic, responded to Cronje’s criticism by acknowledging the validity of the concerns raised. This has sparked discussions within the cryptocurrency community about the potential risks associated with Ethena and its stablecoin USDe.

In a recent development, Ethena Labs announced the launch of its governance token, ENA, and the expansion of its yield-earning stablecoin, USDe. Additionally, Ethena initiated an airdrop of 750 million ENA tokens. Users participating in the Shard Campaign can claim free tokens based on the number of ‘shards’ accumulated before April 1.

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