Final Part – Why is it easily referred to as Ponzi?
(Always an example)
This mechanism looks simple as follows:
- New users send ETH to mint USDe
- The system makes money from that ETH
- Takes the money to pay stakers and buy back $ENA
- ENA price rises → advertises again → attracts more people to mint USDe
It's no different from a loop that depends on new people, similar to the Ponzi model but “wrapped” in a delta-neutral hedge mechanism.
Therefore, it is said:
USDe is a prerequisite for ENA to soar.
But as USDe expands → the loop resembles Ponzi more.
