Ethena founder: Ethena and Tether are not in competition, but promote each other

Odaily Planet Daily News Ethena founder Guy Young posted on the X platform that many people think that Ethena and Tether are competitors, but on the contrary, their respective growth will directly promote each other. In this market where about 70% of perpetual contracts are denominated in USDT, every time Ethena adds a short position, it will create new demand for USDT, because the counterparty must use USDT as collateral to establish a long position. This mechanism means that every time USDe supported by perpetual contracts is issued by $1, it will drive an increase in demand for USDT by about $0.7. Young pointed out that Tether does not need to launch its own income products at all, because traders are already using USDT as collateral and paying an annualized interest rate of 10%-30% to go long perpetual contracts.