Company: TLGYF
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001213900-25-125608
Chunk: 207

Company: TLGY ACQUISITION CORP
Filing Date: 2025-12-29
Form: S-4/A
Chunk 207
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gedstrategies using perpetual futures contracts. The Ethena Protocol’s reliance on perpetual contracts exposes it to funding risks and any prolonged periods of negative funding rates could deplete the reserve fund, reduce protocol revenue, and undermine confidence in USDe. Although historical data suggests negative funding periods are often short -lived, there is no guarantee that extreme or sustained funding pressures would not threaten USDe’s peg and destabilize the ecosystem. 69 The Ethena Protocol also uses liquid staked tokens (“ LSTs”), such as stETH, as collateral for its derivatives positions. If the value of an LST materially diverges from its underlying asset, exchanges may forcibly liquidate positions, causing realized losses for the protocol. A severe depeg of an LST or a critical smart contract vulnerability in an LST asset could impair collateral value, force hedging unwinds, and reduce confidence in the stability of USDe. In addition, the Ethena Protocol relies on Off -ExchangeSettlement (“ OES”) providers to custody its backing assets and centralized exchanges to execute derivatives trades. Failures or insolvency of a custodian, or a sudden failure of an exchange, could prevent the protocol from hedging its positions or meeting redemption demands. Any loss of funds or prolonged disruption in these systems could damage the stability of USDe and, by extension, the value of ENA. If USDe were to fail to maintain its intended $1.00 value or if its trading price were to materially deviate from that value on one or more exchanges, whether due to funding stresses, collateral depegs, custodial failures, exchange -relatedissues or broader market loss of confidence, the credibility of the Ethena ecosystem could be significantly impaired. For example, on October10, 2025, amid a broader market sell -offand deleveraging, USDe traded at a temporary discount to $1.00 on certain centralized venues. Post -eventanalyses indicates the deepest dislocation was largely confined to a single centralized exchange’s USDe/USDT market (reported intraday low of approximately $0.65), and attribute the magnitude of that move primarily to that exchange’s venue -specificpricing/oracle and collateral risk -managementconfiguration (including reliance on its own order book for pricing), rather than any downtime in Ethena’s mint/redeem mechanism or evidence of impairment of reserves. Such exchange -leveldisruptions, even when the protocol is functioning as designed, may be perceived by market participants as a failure, potentially