According to PANews, Guy Young, founder of Ethena, explained on X (formerly Twitter) that his company’s relationship with Tether is not one of competition but a mutually beneficial partnership. This alignment is evident in the high usage of USDT (Tether), which comprises approximately 70% of perpetual contracts’ denominations. Ethena’s strategic action involves adding short positions to these markets, creating new demand for USDT. For every dollar issued in USDe supported by perpetual contracts, a corresponding $0.7 increase in demand for USDT occurs due to the collateral requirement for long positions. This mechanism effectively translates Tether’s USD backing into greater market liquidity.