Ethena Founder: Ethena and Tether are not competitors; their respective rise will directly promote each other.

PANews, April 24 news, Ethena founder Guy Young published on platform X, stating that many people misunderstand the relationship between Ethena and Tether - the two are not competitors, but rather each other's growth will directly promote one another. In a market where about 70% of Perptual Futures are priced in USDT, every time Ethena adds a short positions, it creates new demand for USDT, as the counterparty must use USDT as collateral to establish long positions. This mechanism means that whenever USDe supported by Perptual Futures increases by 1 USD, it will drive about 0.7 USD of USDT demand growth. Young pointed out that Tether doesn't need to launch its own yield products because traders are already using USDT as Collateral, paying annualized rates of 10%-30% to go long on Perptual Futures. Ethena is precisely the channel that converts this demand. User behavior in the crypto market is extreme, either pursuing extreme liquidity or seeking the highest yield. When interest rates decline, the middle ground of "poor liquidity yet claiming risk-free returns" will be eliminated. The trading sector needs to be more liquid and have better distribution advantages than Tether, while the savings sector needs to offer higher yields than Ethena; the middle path is difficult to succeed. He believes that the "barbell strategy" formed by Tether and Ethena is the ultimate form of industry development.