Founder of Ethena Labs offers reassurance on USDe stability despite concerns over high yields

Ethena Labs’ USDe stablecoin yield has sparked concerns in the crypto community, but founder Guy Young believes it is a natural sign of a maturing industry. In an exclusive interview with Cointelegraph on February 22, Young addressed the concerns surrounding the launch of USDe on the public mainnet on February 19. The Ethereum-based synthetic dollar currently offers a 27.6% annual percentage yield (APY), which has raised questions about the protocol’s economic sustainability. This is especially significant considering the collapse of the Terra-LUNA ecosystem in May 2022, which wiped out billions of dollars in value. However, Young emphasizes that unlike the Anchor Protocol’s artificially inflated yield, USDe’s yield is publicly verifiable. It is generated through staking returns and shorting Ether perpetual futures contracts. While USDe is not the only product offering double-digit yields, with Pendle Finance’s ezETH pool offering a 41% fixed APY for staked Ether, the concerns around Ethena Labs’ stablecoin yield reflect the industry’s maturation process.