Been tracking Ethena's transparency dashboard to gauge leverage and perps positioning during this bear cycle.

The crypto basis trade (long spot, short perps) just hit 0.9% of their total deployment - lowest since Ethena launched in 2024.

This is a key signal. When basis trades collapse, it means:

• Funding rates are compressed or negative

• Perp shorts are overcrowded

• Spot premium is dead

Translation: leverage is getting flushed out. Market is cleansing. Usually a precursor to bottoming or a shift in structure.

Keep an eye on $USDe yield - if basis stays this low, yields will compress hard. But also means less systemic risk from unwinding trades.

Bear market doing what it does best - killing the arb plays and forcing real conviction.