COO @ethena_labs. Systematic Trader. Former @tradeparadigm @DeribitExchange
Joined June 2021
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Elliot Parker retweeted
Introducing Earn+: up to 12% rewards on your dollars in a single click.
Available exclusively on @EthenaPay.
Elliot Parker retweeted
Ethena is partnering with @Binance as our first venue for the extension of the basis trade into equity perpetuals, one of the most exciting updates to the USDe collateral backing since launch.
This expands the addressable market of underlying collateral from $2.5 trillion of crypto to $150 trillion+ of real-world assets.
As part of the partnership, bStocks will serve as tokenized spot collateral, hedged with Binance USDT-denominated equity perpetuals - the same delta-neutral structure Ethena has securely executed across crypto assets since inception.
Importantly, Binance provides lower ADL priority for eligible delta-neutral accounts including Ethena's, adding another layer of risk mitigation for USDe holders.
Binance equity basis has averaged ~11%+ annualized over the past 6 months, while open interest has grown on average ~30% per month in the last 3 month period.
We expect the market opportunity size for equity perpetuals to far exceed the $15b+ of crypto perpetuals captured by Ethena last cycle.
Allocations begin today.
Elliot Parker retweeted
Proud to announce that Ethena has completed a SOC 2 Type II audit based on the Security Trust Services Criteria, receiving a clean opinion from an independent auditor with zero exceptions noted.
SOC 2 is a widely recognized standard for enterprise-grade, operational security assurance: an independent audit of how Ethena actually run access control, change management, monitoring, and incident response.
Unlike a Type I report, which checks that controls are designed correctly at a single point in time, a Type II examination tests that those controls actually operated effectively over time.
The audit covers infrastructure and processes supporting our products. It is distinct from, and complementary to, the smart contract audits and security reviews covering the Ethena protocol.
We believe rigorous operational security should be table stakes for any onchain infrastructure handling billions of dollars, and we intend to maintain continuous SOC 2 coverage into the future.
Ethena joins a very short list of onchain businesses that have completed SOC 2 Type II, including Circle, Chainlink and Aave.
The full report is available to partners on request under NDA.
Elliot Parker retweeted
Introducing @EthenaPay: the internet money neobank.
→Card spend cashback at 5.0%
→Best-in-class 6.0% dollar savings rate
→Borderless, free, instant global money transfers
→Free global onramps in USD, GBP, EUR and local FX
→Multi-currency high-rewards savings accounts in local FX
→Unified fiat IBAN integration with self-custodial stablecoin accounts
→Buy Now Pay Never where your savings rewards covers daily expenses
Not coming soon™️. Live now to download on iOS.
Introducing Ethena Pay: the internet money neobank, built on @avax.
Live now to download on iOS.
Elliot Parker retweeted
Extending USDe backing: basis on equity perpetuals.
Equity perpetuals now carry nearly >$6bn of open interest across 200 contracts on the same venues Ethena already executes, growing >10x since March.
Funding rates on equity perpetuals have paid 15-20% on average, >5x the Bitcoin funding rates in 2026, with near-zero correlation to crypto funding.
The underlying asset base is >$150 trillion compared to ~$2.5 trillion of crypto, making this the most scalable extension of the basis allocation to date. We expect RWA perpetuals to eclipse crypto allocations in USDe's backing within 12-24 months.
Safe implementation of the equity basis trade at large size requires the exact infrastructure Ethena has already operated at scale with 0bps of impairment on over $30b of mint and redeem flow for >2.5 years: precise delta-neutral execution at scale, secure off-exchange custody & settlement, and institutional-grade security practices.
The first partner exchange announcements and deployments will begin over the course of the next few weeks.
Details in the link below:
Elliot Parker retweeted
We are excited to announce four updates regarding the Ethena ecosystem, further details on each point are provided in the blog linked below:
1. Buyout of early investors:
The Ethena Foundation executed a buyout of all locked tokens from certain major seed investors that sold any ENA within the last 9 months.
2. Alignment of Token & Equity:
The Ethena Foundation and Ethena Labs have reached agreement on a Master Framework Agreement, whereby IP and ownership of value accrued by the protocol is assigned to the Foundation exclusively and governed by token holders with no residual cash flow due to equity investors in the Labs entity.
3. Revenue Buybacks:
Governance proposal now live for the implementation of the fee switch whereby net revenue accrued across all business lines under the Ethena brand will be used to programmatically buy back the ENA token.
The vote for revenue buyback fee switch implementation is now here, and has already been approved by the Risk Committee:
snapshot.box/#/s:ethenagover…
4. Removal of monthly VC unlocks:
The Ethena Foundation and lead investors have agreed to eliminate future overhang associated with monthly VC investor unlocks by releasing unvested tokens. All team tokens remain locked per the original vesting schedules.
Further details and documentation is provided in the blog linked below:
Elliot Parker retweeted
Ethena has partnered with FalconX, a leading digital asset prime broker, as an insitutional lending partner.
As part of the partnership, Ethena will invest in stablecoin lending arrangements to @FalconXGlobal on an overcollateralised basis as part of our institutional lending allocations.
FalconX is able to scale its balance sheet, while Ethena benefits from FalconX's loan origination and secured lending expertise, enabling stronger risk-adjusted terms than are available elsewhere.
Elliot Parker retweeted
We are excited to partner with @RobinhoodCrypto to bring Ethena's product suite to Robinhood Chain.
Ethena has been selected by Steakhouse, the curator of the vault, as the primary collateral asset issuer for Robinhood's first crypto earn product.
This is the first decentralized lending product available directly in the Robinhood app.
Elliot Parker retweeted
Excited to announce our collaboration with @Blackrock.
→Integration of USDe into BlackRock's Aladdin platform
→BUIDL as the primary asset for our whitelabel product
→Liquidity facility on BlackRock tokenized products
The integration of USDe on Aladdin provides unique institutional access for the >$20 trillion of assets managed by financial institutions on Aladdin.
Elliot Parker retweeted
Ethena and @coinbase have partnered to grow onchain finance and savings products for their 100m+ userbase, with the first growth initiative launching next week.
Alongside this partnership Coinbase Ventures have also made their first investment into Ethena on the open market.
Coinbase Ventures is proud to back @Ethena through an open market purchase of ENA.
Ethena is a critical player in onchain finance, and we are excited for the closer partnership with Coinbase and USDC.
Elliot Parker retweeted
With all respect to Star, this story is candidly ridiculous.
Star is trying to claim that the root cause of 10/10 was Binance creating an Ethena yield campaign, causing USDe to get overleveraged from traders looping it on Binance, which eventually unwound because of a small price move.
The problems with this story:
1) The timing of this story doesn't line up. BTC bottomed a full 30 minutes before USDe price was affected on Binance. So USDe clearly can't have *caused* the liquidation cascade. This is clearly misplacing cause and effect.
2) USDe price diverged ONLY on Binance, it did not diverge on other venues. But the liquidation spiral was happening everywhere. So if the USDe "depeg" did not propagate across the market, it can't explain how *every single exchange* saw huge wipeouts. This is very much unlike Terra, which depegged everywhere and caused the same damage across every venue.
So maybe you could hedge Star's argument by saying "OK, maybe Ethena didn't *cause* 10/10, but it amplified it." But even as an amplifier, USDe fails the test because it didn't propagate cross-exchange. We know what a good explanation of a crash looks like—Terra, 3AC, FTX, all had global balance sheet effects that were felt everywhere. USDe did not do that, it was a Binance order book isolated event.
3) This begs the question: why is Star "revealing" this now, months later? Star does not produce any new evidence for this theory that people didn't already know and analyze to death. All of the order book data has been public for 4+ months and suddenly he claims this? This feels more like Star is picking a fight with CZ and using this simple story as a pretext to make it sound like CZ was in on it, or caused 10/10 through his own irresponsibility.
Look, the reality is, there's no simple story explaining 10/10 that survives scrutiny. I don't have one either. If there was a simple story that could explain 10/10, there would already be widespread agreement about what caused it, like the agreement around the 3AC or FTX crashes.
The best story to explain 10/10 is, to my mind:
* Trump spooked markets with tariff threats on a Friday evening
* This caused markets to sell off dramatically because crypto was the only thing to trade
* Flurry of activity caused Binance APIs to go down, causing huge price dislocations and preventing market makers from balancing inventory across exchanges. This caused huge liquidations that could not get filled, but liquidation engines keep firing regardless, and all this got amplified by ADLs initiating everywhere and breaking hedges and risk management
* This caused MMs to get wiped out, and they were unable to pick up the pieces—MMs need APIs to rebalance inventory, and without MMs, there were no buyers of last resort for many alts. Retail was not going to step in on a chaotic Friday evening to buy stuff
* Crypto liquidation mechanisms are not designed to be self-stabilizing the way that TradFi mechanisms are (circuit breakers, etc.), crypto liquidations are designed purely to minimize insolvency risk
* Altcoin prices are extremely path dependent, and we ended up in a bad path
That's my story. It's not a very satisfying one, but neither is this "Binance + Ethena did it" story. A better root cause explanation is "APIs went down at the worst possible time," but that doesn't really sound so dastardly.
Where simple stories do not suffice, unfortunately you have to choose a complicated one. And I think this complicated story is the best one for what actually happened on 10/10. Thankfully, the history of crypto is a long series of these "bad things happened, and later the market recovered."
In the long run, I'm not worried that 10/10 permanently broke the market. Just that prices are path-dependent, retail + MMs got hurt bad on 10/10, and will need time to recover.
No complexity. No accident.
10/10 was caused by irresponsible marketing campaigns by certain companies.
On October 10, tens of billions of dollars were liquidated. As CEO of OKX, we observed clearly that the crypto market’s microstructure fundamentally changed after that day.
Many industry participants believe the damage was more severe than the FTX collapse. Since then, there has been extensive discussion about why it happened and how to prevent a recurrence. The root causes are not difficult to identify.
⸻
What actually happened
1.Binance launched a temporary user-acquisition campaign offering 12% APY on USDe, while allowing USDe to be used as collateral with the same treatment as USDT and USDC, and without effective limits.
2.USDe is a tokenized hedge fund product.
Ethena raises capital via a so-called “stablecoin,” deploys it into index arbitrage and algorithmic trading strategies, and tokenizes the resulting fund. The token can then be deposited on exchanges to earn yield.
3.USDe is fundamentally different from products such as
BlackRock BUIDL and Franklin Templeton BENJI, which are tokenized money market funds with low-risk profiles.
USDe, by contrast, embeds hedge-fund-level risk. This difference is structural, not cosmetic.
4.Binance users were encouraged to convert USDT and USDC into USDe to earn attractive yields, without sufficient emphasis on the underlying risks. From a user’s perspective, trading with USDe appeared no different from trading with traditional stablecoins—while the actual risk profile was materially higher.
5.Risk escalated further as users:
•converted USDT/USDC into USDe,
•used USDe as collateral to borrow USDT,
•converted the borrowed USDT back into USDe,
•and repeated the cycle.
This leverage loop produced artificial APYs of 24%, 36%, and even 70%+, widely perceived as “low risk” simply because they were offered by a major platform. Systemic risk accumulated rapidly across the global crypto market.
6.At that point, even a small market shock was sufficient to trigger a collapse.
When volatility hit, USDe depegged quickly. Cascading liquidations followed, and weaknesses in risk management around assets such as WETH and BNSOL further amplified the crash. Some tokens briefly traded near zero.
The damage to global users and companies—including OKX customers—was severe, and recovery will take time.
⸻
Why this matters
I am discussing the root cause, not assigning blame or launching an attack on Binance. Speaking openly about systemic risks is sometimes uncomfortable, but it is necessary if the industry is to mature responsibly.
I expect there may be significant misinformation and coordinated FUD directed at OKX in the near future. Even so, speaking honestly about systemic risk is the right thing to do—and we will continue to do so.
As the largest global platform, Binance has outsized influence—and corresponding responsibility—as an industry leader. Long-term trust in crypto cannot be built on short-term yield games, excessive leverage, or marketing practices that obscure risk.
The industry needs leaders who prioritize market stability, transparency, and responsible innovation—not a winner-take-all mentality where criticism is treated as hostility.
Crypto is still early.
What we choose to normalize today will determine whether this industry earns lasting trust—or repeats the same mistakes again.
Elliot Parker retweeted
We want simple explanations and scapegoats but unfortunately this is just factually incorrect.
Data below shows clearly USDe had a price discrepancy on Binance orderbooks a full 30 minutes *after* BTC had bottomed from the crash.
Either you are wrong or this is the first "root cause" which happened after an event takes place.
You have a large audience who trusts what you say. Spend 5 minutes looking at the data before. Do better.
No complexity. No accident.
10/10 was caused by irresponsible marketing campaigns by certain companies.
On October 10, tens of billions of dollars were liquidated. As CEO of OKX, we observed clearly that the crypto market’s microstructure fundamentally changed after that day.
Many industry participants believe the damage was more severe than the FTX collapse. Since then, there has been extensive discussion about why it happened and how to prevent a recurrence. The root causes are not difficult to identify.
⸻
What actually happened
1.Binance launched a temporary user-acquisition campaign offering 12% APY on USDe, while allowing USDe to be used as collateral with the same treatment as USDT and USDC, and without effective limits.
2.USDe is a tokenized hedge fund product.
Ethena raises capital via a so-called “stablecoin,” deploys it into index arbitrage and algorithmic trading strategies, and tokenizes the resulting fund. The token can then be deposited on exchanges to earn yield.
3.USDe is fundamentally different from products such as
BlackRock BUIDL and Franklin Templeton BENJI, which are tokenized money market funds with low-risk profiles.
USDe, by contrast, embeds hedge-fund-level risk. This difference is structural, not cosmetic.
4.Binance users were encouraged to convert USDT and USDC into USDe to earn attractive yields, without sufficient emphasis on the underlying risks. From a user’s perspective, trading with USDe appeared no different from trading with traditional stablecoins—while the actual risk profile was materially higher.
5.Risk escalated further as users:
•converted USDT/USDC into USDe,
•used USDe as collateral to borrow USDT,
•converted the borrowed USDT back into USDe,
•and repeated the cycle.
This leverage loop produced artificial APYs of 24%, 36%, and even 70%+, widely perceived as “low risk” simply because they were offered by a major platform. Systemic risk accumulated rapidly across the global crypto market.
6.At that point, even a small market shock was sufficient to trigger a collapse.
When volatility hit, USDe depegged quickly. Cascading liquidations followed, and weaknesses in risk management around assets such as WETH and BNSOL further amplified the crash. Some tokens briefly traded near zero.
The damage to global users and companies—including OKX customers—was severe, and recovery will take time.
⸻
Why this matters
I am discussing the root cause, not assigning blame or launching an attack on Binance. Speaking openly about systemic risks is sometimes uncomfortable, but it is necessary if the industry is to mature responsibly.
I expect there may be significant misinformation and coordinated FUD directed at OKX in the near future. Even so, speaking honestly about systemic risk is the right thing to do—and we will continue to do so.
As the largest global platform, Binance has outsized influence—and corresponding responsibility—as an industry leader. Long-term trust in crypto cannot be built on short-term yield games, excessive leverage, or marketing practices that obscure risk.
The industry needs leaders who prioritize market stability, transparency, and responsible innovation—not a winner-take-all mentality where criticism is treated as hostility.
Crypto is still early.
What we choose to normalize today will determine whether this industry earns lasting trust—or repeats the same mistakes again.
Elliot Parker retweeted
USDe is now available on Korea's largest exchange with Upbit 🇰🇷
More details on reward programs to follow shortly
신규 디지털 자산 유에스디이(USDE) 거래지원 안내
✅ 지원 마켓: KRW, BTC, USDT 마켓
📅 거래지원 개시 시점: 2026-01-14 18:00 KST 예정
🔗공지 바로가기:
upbit.com/service_center/not…
#Upbit #USDE
@ethena
Elliot Parker retweeted
While we share these suggestions privately with any partner we work with across both DeFi and CeFi, want to surface this publicly so there is zero doubt going forward on what we view as appropriate oracle design and risk management for USDe:
Elliot Parker retweeted
USDe Proof of Reserves are typically provided on a weekly basis by 3rd party independent attestors including leading firms such as Chaos Labs, Chainlink, Llama Risk and Harris & Trotter.
On request from the community, we have provided a Proof of Reserves outside of the regular cadence following the market events in the last 24hrs which have been linked below this message.
Each of these independent 3rd parties have confirmed USDe remains overcollateralised by approximately ~$66m.
Maximum transparency.
Elliot Parker retweeted
USDe has hit $600M on Binance, just 1 day after announcing 12% APR.
This showcases the huge growth potential for USDe as it can tap into the distribution power of the world's leading exchange in both spot and perps and with over 280M users worldwide.
$1B on Binance inevitable.
Elliot Parker retweeted
We are excited to announce one of our most important integrations to date
Ethena has partnered with Binance to embed USDe across its entire platform of 280m+ users and $190b+ in assets including:
• USDe reward bearing collateral for futures and perpetuals trading
• Direct integration with Binance Earn
• USDe spot pairs
With more to come in the following weeks
Details below: