What is "Ethena Delta Neutral" ? - So Simple Even a Kid Gets It Everyone keeps asking: “How does USDe stay stable when crypto goes crazy?” @Ethena_Eco doesn’t pray for stability. It builds it using a simple delta-neutral hedge. When someone mints USDe, they send in crypto (ETH, BTC, stETH…). Ethena takes that collateral and immediately does two things: ▸ Holds the asset (spot) ▸ Opens an equal-sized short position (perp) This creates a perfectly balanced position. Now the example makes sense: $100 worth of collateral Long $100 stETH → Short $100 ETH perp (Two sides. Equal size. Neutral) If ETH goes +10%: Spot + $10 Short – $10 ➡️ Net = $100 If ETH goes –10%: Spot – $10 Short + $10 ➡️ Net = $100 Value doesn’t move, because the gains/losses cancel out. USDe stays stable because it’s hedged, not because it relies on a token pump.