Company: TLGYF
Filing Date: 2025-10-02
Form Type: 425
Source: 0001213900-25-095334
Chunk: 3

Company: TLGY ACQUISITION CORP
Filing Date: 2025-10-02
Form: 425
Chunk 3
---
 in a bull case, the yield bearing stablecoin market could grow to about 50% of the stablecoin market in the next five years.
So you're seeing not only you're seeing a 12x increase in the TAM of stablecoins, you're potentially seeing a 10x increase within the
stablecoin market of yield bearing stablecoins growing to be half of that 3.7 trillion market. So that's a massive compounding effect,
and we think that is by the definition of what the stablecoin supercycle is, and ENA and the Ethena protocol is well poised to benefit
from that.

<div align='center'>2</div>

Dan Cecilia (Host):That. Yeah, no, it's
a great point. And I think any investor, right, when they look at this asset class or they look at stablecoins and they think I want to
yield, right? That's kind of what investors are looking for. And USDC, some of these traditional issuer stablecoins, USDT, they don't
pass that yield on. So I think that's where if you do the research into Ethena, that's where it stands out. So it's a great point and
definitely something that sets it apart. So for our audience who they're typically familiar with traditional derivatives options futures,
can you explain where that yield comes from? Kind of dig into that a little bit, that delta neutral approach?

Young Cho (TLGY):So this is a pretty common
strategy that's run by a lot of hedge funds in the crypto space. It actually came from the traditional finance guys. They've actually
done this with U.S. treasuries. And so what they do is they typically sell the futures and buy spot, and that's in “tradfi”.
But in the crypto world, what a lot of these hedge funds have done in the past, and because there's a pretty nice premium with it, they
sell Bitcoin futures and then they buy the spot Bitcoin. So they're hedged, right? So whatever happens to the price of Bitcoin, it's always
delta neutral because it's hedged. You're buying spot, but you're selling futures and there's a premium to futures because typically people
pay for that premium because they're getting leverage on those Bitcoin futures. So that's what the Ethena protocol does. They sell the
Bitcoin futures and then they buy the spot and then they pass on that difference, that