Ethena USDe (usde) 
Ethena Labs has committed to publishing monthly reports to provide detailed information about the custody and reserves of its USDe stablecoin. This move aims to enhance transparency for its users and investors.
Recently, Ethena Labs released three custodian attestations for the assets backing its $2.67 billion USDe token. These assets are hedged by major cryptocurrencies, including Bitcoin (BTC) and Ether (ETH).
According to the decentralized finance (defi) startup, Ethena’s stablecoin holds $1.31 billion and $1.33 billion of its reserves with Swiss firms Copper Markets AG and CH Europe Digital Solution (CEFFU) respectively. Cobo Global HK Limited manages the remaining USDe assets worth $5.52 million. Additionally, Ethena Labs maintains a $42.3 million reserve fund for emergency purposes.
The triple attestation shared on May 27 indicated that USDe boasts a 101.74% backing rate. This over-collateralization ensures that the asset can accommodate redemptions even if every user decided to liquidate.
Developer raises concerns about Ethena becoming new UST
Ethena Labs addressed community feedback following the mainnet launch of USDe in February. After introducing the governance token ENA and onboarding BTC as a hedge asset, there were concerns about a potential systemic failure similar to the crashes experienced in 2022.
One notable voice with concerns was Fantom developer Andre Cronje. He drew parallels between USDe and TerraUSD (UST), an algorithmic stablecoin designed by Do Kwon’s Terraform Labs. At its peak, UST had an $18 billion market cap. However, its crash led to a $60 billion implosion across the Terra ecosystem, causing a ripple effect of bankruptcies in the crypto market.
Despite industry skepticism, USDe has seen significant user demand and currently holds a market cap nearing $3 billion, according to DefiLlama. The protocol has also expanded its reserves by adding more cryptocurrencies and partnering with liquidity pool providers such as Frax Finance.
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