Zhu Su analyzes the impact of Ethena strategy on Ethereum price fluctuations: deeper retracements and faster rebounds

BlockBeats news, on March 19, Zhu Su, co-founder of Three Arrows Capital, said on social media that Ethena has created an interesting dynamic. Under normal circumstances, if people choose to hold spot positions and short contracts for capital rate arbitrage, when When the rate returns to neutral, users may begin to cover contracts and go long again. However, due to the existence of Ethena, some positions have now been pledged and turned into US dollars (this should mean that some spot and futures short positions have been pledged and minted USDe through a combination). This could mean a deeper retracement and faster rebound for ETH.