Episode 507
Guy Young (Ethena) on the Past and Future of Crypto Interest Rates (EP.507)
On The Brink with Castle Island · Castle Island Ventures
February 28, 202448m 53s
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Show Notes
Guy Young, the founder of Ethena, rejoins the show to give us an update on Ethena and to discuss the nature of crypto interest rates.
In this episode:
- Reflections on the Ethena launch
- ETH funding rates versus ETH ETF expectations
- Funding rates on crypto native exchanges versus CME
- Why Ethena versus doing the cash and carry trade
- At what point does Ethena start to drive down funding rates
- The history of the cash and carry trade in crypto
- Did yield farming represent a real form of yield?
- Why is yield farming less viable today?
- The ultimate convergence between tradfi and crypto yields
- Where risk premia come from for Ethena versus the risk free rate
- ETH taking yields and their development
- Guy's concerns about Eigenlayer and its effect on DeFi
- Interactions between real rates and crypto rates
- Stablecoin supply versus tradfi interest rates
- Crypto yields versus RWA supply
- The share of stablecoins that is speculative in nature
- Guy's expectations for the medium term future of crypto rates