Company: TLGYF
Filing Date: 2025-10-02
Form Type: 425
Source: 0001213900-25-095334
Chunk: 6

Company: TLGY ACQUISITION CORP
Filing Date: 2025-10-02
Form: 425
Chunk 6
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 we're exploring all those different things, but we have to be mindful that we are an SEC reporting company.

Dan Cecilia (Host):Of course, for sure.
So I think when I hear yield bearing stablecoin, I think other crypto natives when they hear yield bearing stablecoin and carry trade
and some of that we look at maybe you think of Terra LUNA, you think of some of these other blowups from last cycle. So a lot of critics
will point to the funding rate risks of the perps markets, futures markets, exchange counterparty risk. Obviously you pointed to the protocols
not running KYC, regulatory oversight risks there. So how are you addressing these risks and mitigating them at being the largest ENA
holder?

Young Cho (TLGY):Yeah, so I mean, we've
come a long way since the Terra LNA debacle and that was an algorithmic stablecoin. This is a synthetic collateralized stablecoin with
the future spaces trade as its collateral like I mentioned. But the ways we mitigate risk is there's a lot of different things that the
Ethena protocol can do itself, and then there's the things that StablecoinX does as a participant or as one of the larger holders of the
ENA tokens. But just to kind of broadly talk about those different topics that you mentioned. So the funding rate is one of the risks.
It's historically been mostly positive. It's ranged anywhere from five to 25% over the past three years, but the funding rates do from
time to time go negative and the Ethena Protocol does have a reserve to buffer losses when rates do go negative. It usually happens, I
think in the past it's happened about 10 or 15% of the time. So they also can close the future basis trade and purchase USDtb to fund
those yields to USDe holders as they wait for the funding rates to go from negative to positive. By the way, the longest that the funding
rates stay negative hasn't been longer than 13 or 14 days.

Dan Cecilia (Host):Oh, wow.

Young Cho (TLGY):But this is something
that the Ethena Protocol does itself to manage those risks, but we as largest older of the ENA tokens, we participate in the governance,
the governance of the Ethena protocol. And so we don't manage directly those types of decisions. We can basically participate in any sort
of decisions or any sort of votes