Ethena founder: Ethena and Tether are not in competition, but promote each other

Mars Finance News, Ethena founder Guy Young posted on X platform, stating that many people believe Ethena and Tether are competitors, but on the contrary, their growth will directly promote each other. In a market where about 70% of perpetual contracts are priced in USDT, every time Ethena adds a short position, it creates new demand for USDT, as the counterparty must use USDT as collateral to establish a long position. This mechanism means that for every additional dollar of USDe supported by perpetual contracts, it will drive approximately 0.7 dollars of USDT demand growth. Young pointed out that Tether does not need to launch its own yield product, as traders are already using USDT as collateral, paying 10%-30% annual interest rates to long perpetual contracts.