1/ Exciting news, the ENA fee switch is coming! We backtested the @ethena new design across 705 days of real protocol revenue, USDe supply and ENA prices to see what it would actually have done. $52.7M a year of ENA buybacks in the months it would have been running. Here is how it works and what we found 🧵

5/ Result two, what it costs sUSDe holders. On the 93 active days where sUSDe was paying more than sUSDS, it still paid more than sUSDS after the buyback on 82 of them. On the other 11 it slipped just behind, all of them within a tenth of the benchmark. Small and worth understanding why it happens. Here is why it happens at all. The buyback takes its 10% whenever USDe is large enough. It never checks whether sUSDe can afford to give up 10%. Usually it can, because sUSDe pays well above sUSDS and losing a tenth still leaves it ahead. On the days sUSDe is only just ahead, the same 10% puts it behind. For context, sUSDe already paid less than sUSDS on 243 of the 705 days we looked at, with no fee switch running at all. This is a market condition the design lives with and not the condition it creates.

1/ Blockworks Advisory is standing for a 5th consecutive term on the @ethena Risk Committee. Our application is now live on the governance forum. Here is what we shipped in term 4 and what is coming in term 5 🧵

4/ Our next priorities for term 5: - Reserve fund methodology reassessment calibrated to the expanded backing universe - Real time mapping of every backing asset through each lending protocol and collateral layer - Live alerting system for internal and public use Besides, we will keep pushing governance updates to maximize institutional credibility and awareness.

We have submitted our proposal to be @CurveFinance risk provider, supporting with risk assessment and market monitoring Why us? 👇

Our goals with Curve: - Build a reliable and lean risk monitoring product. - Provide deep assessments on the proposals and work proactively with other contributors. - Improve Curve positioning with institutional capital.