WHERE DOES ETHENA’S YIELD COME FROM

Summary from the TLDR Crypto newsletter

Ethena Labs rolled out USDe, a trust-minimized scalable stablecoin, earlier this week. It also released sUSDe, a yield-bearing version that offers a 27% yield. Ethena generates its returns using yield from staked Ethereum and financing rates from its short positions, using staked Ethereum and perpetual contracts to maintain the stablecoin’s peg. This means the yield is not without risks.