In an effort to increase openness regarding its USDe stablecoin, Ethena Labs promised to release monthly reports that include custody and reserve details.
Three custodian attestations for the assets supporting Ethena Labs’ $2.67 billion USDe token, which is backed by cryptocurrency-denominated currencies, including Bitcoin (BTC) and Ether (ETH), were made public by the synthetic dollar issuer.
Ethena’s stablecoin reserves are $1.31 billion and $1.33 billion, respectively, with the Swiss companies Copper Markets AG and CH Europe Digital Solution (CEFFU), according to the defi startup.
USDe has $5.52 million worth of remaining assets under management with Cobo Global HK Limited. Ethena Labs additionally boasts a $42.3 emergency reserve money. The issuer said that USDe had a 101.74% backing rate in the triple attestation provided on May 27.
This indicated that the asset was over-collateralized and could support redemptions if all users sold. Speaking to Ethena USDe worries Ethena’s post addresses comments received from the public following the February mainnet launch of USDe.
After the introduction of the governance token ENA and the onboarding of Bitcoin as a hedge asset, many within the community began to fear a potential systemic breakdown akin to the crashes of 2022.
Andre Cronje, the developer of Fantom, was one of the well-known voices expressing doubts. Cronje compared the USDe to TerraUSD (UST), an algorithmic stablecoin created by Do Kwon’s Terraform Labs.
UST had a $18 billion market capitalization at its height. However, the token’s collapse set off a $60 billion collapse throughout the Terra ecosystem and began a chain reaction of bankruptcies across the cryptocurrency space.
USDe has attracted user demand and a market capitalization of around $3 billion, according to DefiLlama, despite industry pessimism. The protocol also established connections with liquidity pool providers like Frax Finance and increased the amount of bitcoins in its reserves.
