Company: TLGYF
Filing Date: 2025-09-23
Form Type: 425
Source: 0001213900-25-090310
Chunk: 2

Company: TLGY ACQUISITION CORP
Filing Date: 2025-09-23
Form: 425
Chunk 2
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 or USDE in, in like a delta neutral position.

That's the way, the way I understand it, and hopefully that's, uh, not
a terrible summary. Um, but it's also not an algorithmic stable coin, so. Do you think, um, how do you think about the complexity of that
instrument? Was that like way off base, just as, as a description or, or why do you think Ethena is structured so uniquely? Just as a,
as a product?

Zach Rosenberg: It wasn't totally off base, it's, it's more than
just eth Now, at, at the outset, the original idea was to use liquid steak teeth as the main collateral because at, at the time it was
throwing off, you know, six, 7% annualized, which is. Pretty meaningful. By the time, um, by the time USDE actually launched, it was down
at, you know, two or 3%.

And when you're trying to scale a product, um, you obviously have to factor
market liquidity and just like the general risk associated withholding certain assets into your, um, in, into your thought process. And
so by the time it was launched, like, and right now very little liquid steak de is held in, in the backing it's.

A lot of Bitcoin, Ethereum, some liquid stake de then, um, ramping up some
other assets like some Solana, uh, recently, like b and b Ripple, pretty much any, um, any of the top 10 tokens with sufficient liquidity
and open interest is, uh, is attractive. Um, but yeah, I think the main, the main point of interest, the main reason why this is different.

And why this is something that, you know, people may want or may demand
other than, um, you know, something like a traditional fiat back stable coin like USDC or Tether is, it's a very different risk profile
as a stable asset. We don't call it a stable coin because we don't want to give off the impression that it has the same risk profile.

We call it a synthetic dollar, which I think is probably the closest you're
gonna get because you do create that synthetic dollar position in the background. Um. It's, it doesn't have the same sort of banking exposure.
It doesn't have the same, the same sort of fiat rail exposure. It's, it