What Is Ethena?
Ethena is a decentralised finance protocol which popularised cash and carry trade.
In cryptocurrency markets, the most popular carry trade is to hold spot cryptocurrency (Bitcoin, Ether), against the similar sized short perpetual contract, creating a delta neutral position. Ethena popularised this strategy by creating a USD stablecoin out of this. Because in perpetual markets, short pays longs, longs pays short, a in a bull market, Ethena trade earns interest on its open short position from traders that have the opposite long position open. Ethena also earns additional yield in the staking rewards of its staked Ether.
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