Does anyone more knowledgeable than me know if the integration of Ethena into Spark has direct or indirect implications for DAI (and sDAI) on Gnosis? Personally, I don’t think Ethena is trustworthy (overall too many risk vectors and not battle-tested in a bearmarket) and the increased weaving of Ethena into a Maker (Sky) product doesn’t sit well with me at first glance.
There also seems to be a conflict of interest with the Spark founder.
Source:
https://x.com/leptokurtic_/status/1879201959003214125
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+1 from me, would be great if someone can provide some in-depth thoughts on this.
My high level view is that it makes DAI/USDS less robust overall, but helps to maintain an attractive sDAI/sUSDS rate over a full cycle (long term average of ETH/BTC funding rate is 10-15% across major exchanges), as the current savings rate leads to Maker/Sky running at a deficit.
In addition to the USDe risk itself, they’re also adding duration risk and third party protocol risk (Pendle) by buying PT tokens expiring in May…
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