Company: TLGYF
Filing Date: 2025-10-02
Form Type: 425
Source: 0001213900-25-095334
Chunk: 4

Company: TLGY ACQUISITION CORP
Filing Date: 2025-10-02
Form: 425
Chunk 4
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 premium that you're earning, that you're gaining
from selling the Bitcoin futures, they pass it on to the USDe holders. And so that's called the delta neutral hedge, the position. And
this is very common with a lot of the larger hedge funds in the crypto space. And this has been proven in the tradfi with U.S. treasuries
like I mentioned before. And so that's where the yield comes from.

Dan Cecilia (Host):Gotcha. Okay. So it's
kind of like a carry trade in other words. And so digging that a little bit, and I think investors, a lot of 'em want to know how to value
things, especially in crypto, right? Sometimes it's vague, especially if you're coming from tradif, maybe they want to value it on fundamentals,
but there's not often one-to-one fundamentals with tradfi. So with this ENA, StablecoinX and ENA, what would you say you would value that
on for investors? Is it token price? Should they look at protocol revenue? Obviously the carry trade's a big component, or is it just
a broader bet to your point on stablecoin innovation and adoption?

Young Cho (TLGY): Yeah, so for valuing
StablecoinX, I mean you got to think about it in two different ways, right? There's the beta component basically, because we are treasury
company of the ENA tokens, but then also there is the alpha. And so that alpha will determine at what sort of premium to mNav we trade
at. The nav is going to be based entirely by the price of ENA tokens. So that's what I call the beta component. And so the ENA token price
is driven by a lot of things. It's driven by the growth of the USDe, it's driven by the users of USDe and the Ethena protocol, the protocol
revenue itself, and increased distributions of USDe on more wallets like exchanges. They had a recent announcement with Binance where
they're basically partnering with them to quote a lot of the cryptocurrencies in USDe.

So there's all that, and that to me is what determines
the mNav, and that is the biggest component of the StablecoinX price, and that's the beta, right? But then the second component, like
I mentioned, is the alpha. The alpha is really how good of a job that we do, the