The protocol’s USDe token, often referred to as “synthetic dollar” instead of a stablecoin, is a structured finance product wrapped in a token. It offers steady yields to investors by using ETH liquid staking derivatives such as Lido’s stETH as backing assets, pairing them with an equal value of short ETH perpetual futures position on derivatives exchanges to keep anchored at $1 price. This strategy is also known as a “cash and carry” trade, which harvests derivatives funding rates for a yield.
Why Holding Cryptocurrency Can Be Safer Than People Think | by Gaze All Over | The Capital | Nov, 2024
Cryptocurrency often has a reputation for being risky. News stories highlight hacks, price crashes, and frauds, leaving many people hesitant...
