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Ethena Labs issues USDe triple certification
Ethena Labs has committed to publishing monthly reports detailing custody and reserves information to improve transparency on its USDe stablecoin.
Synthetic dollar issuer Ethena Labs released three custodianship certificates for the assets supporting its $2.67 billion USDe token backed by cryptocurrency-denominated currencies, including Bitcoin (Bitcoin) and ether (ET).
According to the defi startup, Ethena stablecoin holds $1.31 billion and $1.33 billion of its stablecoin reserves at Swiss firm Copper Markets AG and CH Europe Digital Solution (CEFFU), respectively. Cobo Global HK Limited manages the remainder of USDe assets worth $5.52 million. Ethena Labs also boasts a reserve fund of $42.30 for emergency purposes.
The triple attestation shared on May 27 stated that the USDe boasted a collateral rate of 101.74%, meaning the asset was over-collateralized and could accommodate refunds if any user chose to liquidate, according to the issuer .
Addressing Ethena USDe concerns
Ethena’s post responds to community feedback following the USDe mainnet launch in February. After the debut of the governance token ENAand adopting BTC as a hedge asset, many in the community have become concerned about a possible systemic failure reminiscent of the 2022 crashes.
One of the prominent voices with doubts was Fantom developer Andre Cronje. Like crypto.news reportedCronje drew parallels between USDe and TerraUSD (UST), an algorithm stablecoin designed by Do Kwon’s Terraform Labs.
At its peak, UST had a market capitalization of $18 billion. But when the token crashed, it triggered a $60 billion implosion in the Terra ecosystem and set off a domino of bankruptcy across the cryptocurrency landscape.
Despite industry skepticism, the USDe did just that harvest user demand and has a market capitalization of nearly $3 billion for DefiLlama. Additionally, the protocol has added more cryptocurrencies to its reserves and bound partnerships with liquidity pool providers such as Frax Finance.