Company: TLGYF
Filing Date: 2025-09-10
Form Type: 425
Source: 0001213900-25-086376
Chunk: 8

Company: TLGY ACQUISITION CORP
Filing Date: 2025-09-10
Form: 425
Chunk 8
---
 one-to-one token in it, DATs basically become this vehicle through which
capital ends up getting mobilized in TradFi world and then deployed on chain at scale. Yeah.

Did this for people who kind of saw the leverage run up of 2021 and
then the leverage blow up right at the end of 2021 and into really in 2022. Does that scare you at all?

Guy Young:Yeah, I don’t think it’s actually the same because
let’s say you’re raising $5 billion of debt to put it like $5 billion into USDe as some example. You’re not actually levering the underlying
crypto asset. Your ETH is not actually encumbered by that trade.

You’re encumbering it by the USDe that you’re putting it into on the
other side. So I think that sort of carry trade that I described there doesn’t actually necessarily increase risk a whole ton because
it’s kind of like collateralized one-to-one with what you’re deploying it into. I think the risk obviously becomes like if you start to
lever up all of the underlying assets and you’re, you know, two X long ETH within the vehicle itself and then these things start getting
liquidated, obviously that becomes a bit more challenging.

I think the one thing that’s good is that they’re all much more transparent
vehicles, right? Like we couldn’t really see into the balance sheets of all of the entities that blew up last cycle. Well, here it’s like
you actually have disclosure requirements to be showing to the market.

So anyone who’s kind of reading those documents will be well aware
of how much leverage there actually is when it is sort of building up.

Host:Yeah. Who, as you think about it, so other than Ethena,
who ends up benefiting the most from this? Like who, what on chain protocols?

Guy Young:Yeah, I think it could be stuff like Syrup, Sky,
Spark, Aave, basically anything that facilitates leverage, always providing like a dollar with a yield type product. I had a tweet on
this actually describing, I quoted the video that you did with Michael when he was talking about the spreads. I think those names I described
there are basically the biggest beneficiaries of that rate shift dynamic.

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Additional Information and Where to Find It

In connection with the Business Combination, Pubco
intends to file with the Securities and Exchange Commission (the