Airdrop Army

With the U.S. election countdown in full throttle, traders brace for volatility as political uncertainty looms. Arthur Hayes, the co-founder of BitMEX and head of the digital asset fund Maelstrom, is taking cautious steps to hedge risks tied to this electoral showdown. Hayes is anchoring part of Maelstrom’s capital in the USDe stablecoin by Ethena Labs but isn’t stepping back from bullish bets on crypto heavyweights like Bitcoin (BTC) and Ether (ETH).

Maelstrom’s choice? A carefully curated 5% allocation in staked USDe, aiming to capture a 13% yield through this synthetic dollar instrument. As Hayes explained to CoinDesk, “We maintain our large long positions in Bitcoin, Ether, and other tokens.”

How USDe Shields Maelstrom’s Crypto Stash from Market Whiplash

Ethena’s USDe isn’t your usual stablecoin. It’s a synthetic asset pegged to the U.S. dollar through collateralized stablecoins and a “cash-and-carry” arbitrage strategy. The USDe relies on shorting perpetual BTC and ETH futures to generate a yield while maintaining the peg. When staked, USDe morphs into sUSDe, a reward-bearing token that automatically reaps protocol rewards.

By hedging part of the Maelstrom portfolio in sUSDe, Hayes is gearing up to absorb potential market shocks from election-related price swings. If November 8 proves turbulent post-election, Maelstrom’s delta-neutral allocation could help keep the portfolio steady. But Hayes isn’t veering off-course from his crypto conviction—his eyes remain on long positions in Bitcoin, Ether, and other digital assets primed to ride market waves.

Prediction Markets Eye Trump Victory as Crypto Traders Bet on BTC’s Next Big Leap

On decentralized prediction platforms, the odds lean toward Donald Trump edging out Kamala Harris, a view echoing Hayes’ strategy. Maelstrom’s calculus hinges on a smooth transition of power—Hayes believes markets will rally if election results are uncontested. “If the election comes and goes with no social unrest, the markets will rip and roar,” he remarked, signaling Maelstrom’s readiness to deploy its sUSDe stake fully back into crypto post-election.

As election chatter escalates, bitcoin options data on Deribit suggests anticipated volatility of around 3.8% on November 8, hinting at a potential BTC rally fueled by post-election confidence. Veteran trader Paul Tudor Jones even opined last week that inflation will persist no matter the winner, driving Bitcoin’s “safe-haven” allure higher amid soaring government deficits.

But with global hotspots like the Middle East simmering, Hayes warns against aggressive positions. War, he says, brings inflation but spells short-term pain. Maelstrom’s game plan? Play it cautious, size trades to avoid market traps, and keep leverage in check until the dust settles.