Ethena Labs has pledged to publish monthly reports detailing custody and holding information to increase transparency about the USDe stablecoin.
Synthetic dollar issuer Ethena Labs has announced three custodian proofs for the assets backing $2.67 billion worth of USDe tokens hedged with cryptocurrency-denominated currencies, including Bitcoin (BTC) and Ethereum (ETH).
According to the DeFi startup, Ethena’s stablecoin joins Swiss companies Copper Markets AG and CH Europe Digital Solutions (CEFFU) with stablecoin reserves of $1.31 billion and $1.33 billion, respectively. Cobo Global HK Limited manages USDe’s remaining assets of $5.52 million. Ethena Labs also boasts a reserve fund of $42.3 for emergency purposes.
A triple proof shared on May 27 claimed that USDe boasts a support rating of 101.74%. This means that the asset is overcollateralized and, depending on the issuer, may accept redemption if any user chooses to liquidate it.
Ethena USDe Troubleshooting
Ethena’s post is in response to community feedback following USDe’s mainnet launch in February. Since governance token ENA debuted and onboarded BTC as a hedged asset, many in the community have become concerned about the possibility of a systemic failure reminiscent of a 2022 crash.
One prominent voice raising doubts was Fantom developer Andre Cronje. As crypto.news reported, Cronje drew parallels between USDe and TerraUSD (UST), an algorithmic stablecoin designed by Do Kwon’s Terraform Labs.
At its peak, UST had a market capitalization of $18 billion. However, when the token crashed, it caused a $60 billion implosion across the Terra ecosystem and started a bankruptcy domino in the cryptocurrency landscape.
Despite industry skepticism, USDe has garnered user demand and has a market capitalization of nearly $3 billion, per DefiLlama. The protocol has also added more cryptocurrencies to its reserves and partnered with liquidity pool providers such as Frax Finance.