Ethena founder denies any no-ADL privilege deals with exchanges
Ethena’s founder publicly clarified that the protocol has never struck any “no-ADL” (no automatic deleveraging) privilege agreements with exchanges. The statement responds to community concerns that Ethena had undisclosed special arrangements to avoid ADL. Ethena documentation, the founder said, has always disclosed ADL risks since launch. He explained that ADL trigger order depends on account leverage and unrealized P&L; Ethena’s design — daily realized P&L settlement and a zero-leverage strategy — places it low in ADL priority. The clarification aims to reassure users and dispel rumors about off‑book protections. No new technical or financial metrics were announced.
Neutral
The announcement is primarily a reputational clarification rather than a material protocol or market-moving event. Ethena denied special no-ADL deals and reiterated that ADL risks were disclosed and that its zero-leverage, daily settlement design lowers ADL priority. This should reduce short-term panic or rumor-driven sell pressure but is unlikely to change fundamentals, liquidity, or adoption materially. For traders: expect temporary volatility in associated tokens if speculation flares, but no clear bullish catalyst or systemic risk was revealed. Historically, similar clarifications (projects denying undisclosed exchange privileges) have had short-lived impact — a brief reduction in negative sentiment followed by normalization unless corroborating evidence emerges. Longer-term market behavior will depend on actual on-chain metrics, trading volumes, and any future disclosures or audits.