Ethena Points Event Approaches Conclusion: Analysis of Returns and Liquidity for Each Plan

Ethena's recent blog content suggests that its points program is about to end. Currently, the implied annual yield of USDe on a certain trading platform has reached an astonishing 170%, demonstrating a high level of market recognition for this high yield. In light of this, it is necessary to delve into how to optimally participate in the final stage of this activity.

Ethena is an innovative financial product where users provide U, and the project team purchases stETH and other Liquidity staking derivatives (LSD) on the exchange, while shorting ETH to achieve hedging, thereby obtaining ETH staking returns and short funding rate returns. In a bull market environment, due to the high funding rates, Ethena's returns are correspondingly enhanced.

Ethena has launched two token products:

1. sUSDe: A token that enjoys native interest, the exchange rate with USDe will continue to rise over time, reflecting the accumulated interest. A 7-day redemption period is required to convert it to USDe.

2. USDe: A non-interest-bearing token, primarily used to build Liquidity in the DeFi ecosystem, etc. The yields of the underlying assets will enhance the returns of sUSDe, while the point rewards are mainly targeted at USDe. Ordinary users usually can only swap USDe with USDC/USDT through the decentralized exchange (DEX), so there will be a small cost for entry and exit.

Ethena Labs offers a variety of points mining methods, with different strategies having different point multipliers. Here are the best plan recommendations for different yield requirements and Liquidity needs:

1. Zircuit+USDe: In the plan without a lock-up period, this is the highest-yielding option with available limits. Depositing USDe into Zircuit can earn 7 times points as well as Zircuit's own point rewards, and withdrawals can be made at any time. Zircuit is a Layer 2 solution backed by well-known venture capital.

2. Locking USDe: This method provides the maximum participation amount, balancing returns and Liquidity. Directly locking USDe can earn 10 times points, but requires a 7-day unlocking period. There is still a considerable remaining quota.

3. Lock Curve USDe LP: High yield but poor Liquidity, limited quota. Locking specific LP tokens can earn 15 times points, but there is a 21-day unlocking period with no earnings during the unlocking period. Considering that the points activity is about to end, the opportunity cost is relatively high. The current quota is almost full, so it's recommended to pay close attention and participate again when new quotas are available.

4. Holding sUSDe: For USD-based investors, the returns are higher, but the points rewards are fewer. There is only 1x points, but you can earn up to 67% native yield. Unlocking requires 7 days, liquidity is average, and it can also be sold at a discount through DEX.

5. Pendle/Gearbox USDe: Theoretically, the returns are extremely high, but in reality, there is almost no available quota. On Pendle, utilizing YT can achieve 200 times points, and on Gearbox, the highest points can be obtained through circular borrowing, up to 90 times. However, both methods carry significant risk of loss and are only recommended for experienced professionals to participate.

Other options do not have significant advantages in terms of liquidity and returns compared to the above options, so users can choose the most suitable strategy from the above options based on their personal liquidity needs.