Ethena Labs pledged to publish month-to-month reviews detailing custody and reserve data to enhance transparency round its USDe stablecoin.
Artificial greenback issuer Ethena Labs launched three custodian attestations for property backing its $2.67 billion-strong USDe token hedged by crypto-denominated currencies together with Bitcoin (BTC) and Ether (ETH).
In line with the defi startup, Ethena’s stablecoin holds $1.31 billion and $1.33 billion of its stablecoin reserves with Swiss agency Copper Markets AG and CH Europe Digital Resolution (CEFFU) respectively. Cobo International HK Restricted manages the rest of USDe’s property value $5.52 million. Ethena Labs additionally boasts a $42.3 reserve fund for emergency functions.
The triple attestation shared on Could 27 claimed USDe boasted a 101.74% backing charge, that means the asset was over-collateralized and will accommodate redemptions if each consumer selected to liquidate, per the issuer.
Addressing Ethena USDe considerations
Ethena’s put up responds to neighborhood suggestions after USDe’s mainnet launch in February. Following its debut of governance token ENA, and onboarding BTC as a hedge asset, many locally grew involved a couple of attainable systemic failure paying homage to the 2022 crashes.
One of many distinguished voices with doubts was Fantom developer Andre Cronje. As crypto.information reported, Cronje drew parallels between USDe, and TerraUSD (UST), an algorithm stablecoin designed by Do Kwon’s Terraform Labs.
At its peak, UST commanded an $18 billion market cap. However when the token crashed, it triggered a $60 billion implosion throughout the Terra ecosystem and kickstarted a chapter domino by way of the crypto panorama.
Regardless of trade skepticism, USDe has garnered consumer demand and has a market cap of almost $3 billion per DefiLlama. Additionally, the protocol added extra cryptocurrencies to its reserves and tied partnerships with liquidity pool suppliers like Frax Finance.