Company: TLGYF
Filing Date: 2025-08-25
Form Type: 425
Source: 0001213900-25-080375
Chunk: 4

Company: TLGY ACQUISITION CORP
Filing Date: 2025-08-25
Form: 425
Chunk 4
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 think about
as like an end state take rate for the entire protocol. I also think (not to complicate this even more) that sort of view of what is
the appropriate take rate actually needs to consider the interest rate environment that sits outside of crypto as well. Because I think
one of the most powerful qualities behind the product is that the industry tends to exhibit a negative correlation to rates in the real
world, and we actually saw that literally two days ago when rates fall in the real world, we tend to see people speculate more on crypto,
move out on the risk curve, and actually the demand for leverage within crypto picks up. So if you look back in 2021, rates went to zero,
funding rates were sitting at 30-40% for many months on end for like 6 months, that’s actually the moment that like Ethena was built
for which is your hurdle rate and your competitors are finding their gross interest income declining off of a cliff as interest rates
fall down, but actually your product is actually staying the same or going up in that environment which a) allows you to grow faster
or b) gives you more scope to actually capture more value back to Ethena itself. So I think a lot of these pieces are just I have a slightly
different view to the market in terms of where we actually want to scale and take this business before we think taking a maximal amount
of revenues back to the token actually makes sense because I just think that that outcome is much more interesting than where we’re sitting
right now. Also think like this consideration for where the general interest rate market is vs our ability to do that. Not trying to
dodge the question too much, but that’s just all the variables that are sort of sitting in our mind as we think through it.

goodalexander: Yeah, yeah absolutely. I mean, I guess the final question is just maybe more of a hardball question, which would just be, when
I look at the price action over the last year, the market cap of the token is up 589% whereas the price is up 87% because of a material
multi-billion dollar framework of unlocks, that have been very well absorbed by the market, and I believe you even tweeted that you were
buying the token personally. As you look forward, how do you think about the unlocks and the FDV overhang, which I think is maybe $5.9B,
and the take rate of the protocol