Company: TLGYF
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001213900-25-125608
Chunk: 441

Company: TLGY ACQUISITION CORP
Filing Date: 2025-12-29
Form: S-4/A
Chunk 441
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 that can generally be transferred or used in other applications while underlying ENA remains staked. Redemption of sENA for ENA is subject to protocol -definedunstaking or unbonding conditions, which may include waiting periods or other limitations that vary by staking mechanism or partner pool. USDe • Tokenomics and Lifecycle: USDe is a synthetic digital dollar designed to maintain a value pegged to $1 USD.

| •   Minting:          |     | Users can mint USDe by depositing supported collateral assets, which currently include Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and certain liquid staking tokens (“LSTs”), such as Lido’s staked Ether (stETH), Binance’s Wrapped ETH (WBETH), Mantle’s staked ETH (mETH) and others, subject to governance approval.                                                                                                                 |
|                       |     | Upon deposit, the Ethena Protocol automatically opens a corresponding short perpetual futures position on a derivatives exchange. This process creates a “delta-neutral” hedge, whereby the value of the collateral is offset by the short position. This mechanism is intended to reduce exposure to crypto price volatility.                                                                                                            |
| •   Redemption:       |     | To redeem USDe, users return the tokens to the protocol, which burns the returned USDe and closes the corresponding short futures position, returning the collateral to the user according to protocol-defined terms.                                                                                                                                                                                                                     |
| •   Yield Generation: |     | USDe’s reserves generate yield primarily from funding payments on hedged derivative positions and other protocol activities. A portion of this yield, if realized, may be made available to sUSDe holders as staking rewards, subject to protocol-defined rules, governance approval, and market conditions. Yield generated by USDe may also be used to support the Reserve Fund to cover operational costs or negative funding periods. |

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• Use of LSTs as Derivatives Collateral: When LSTs are deposited, including stETH, WBETH, mETH and other protocol -approvedLSTs, the Ethena Protocol utilizes them as margin collateral to open short perpetual futures positions. Because the short positions are typically denominated in the underlying asset (e.g., ETH -PERP), using LSTs introduces basis risk due to potential differences in value between the LST and its underlying asset. To mitigate this, the protocol applies predefined discounts to the collateral value of LSTs and monitors the price spread between each LST and its underlying asset to