Ethena Labs releases triple USDe attestation 

Ethena
Labs
pledged
to
publish
monthly
reports
detailing
custody
and
reserve
information
to
improve
transparency
around
its
USDe
stablecoin. 

Synthetic
dollar
issuer
Ethena
Labs

released
three
custodian
attestations
for
assets
backing
its
$2.67
billion-strong

USDe
token
hedged
by
crypto-denominated
currencies
including
Bitcoin
(BTC)
and
Ether
(ETH). 

According
to
the
defi
startup,
Ethena’s
stablecoin
holds
$1.31
billion
and
$1.33
billion
of
its
stablecoin
reserves
with
Swiss
firm
Copper
Markets
AG
and
CH
Europe
Digital
Solution
(CEFFU)
respectively. Cobo
Global
HK
Limited
manages
the
remainder
of
USDe’s
assets
worth
$5.52
million.
Ethena
Labs
also
boasts
a
$42.3
reserve
fund
for
emergency
purposes. 

The
triple
attestation
shared
on
May
27
claimed
USDe
boasted
a
101.74%
backing
rate,
meaning
the
asset
was
over-collateralized
and
could
accommodate
redemptions
if
every
user
chose
to
liquidate,
per
the
issuer.

Addressing
Ethena
USDe
concerns

Ethena’s
post
responds
to
community
feedback
after
USDe’s
mainnet
launch
in
February.
Following
its
debut
of
governance
token

ENA,
and
onboarding
BTC
as
a
hedge
asset,
many
in
the
community
grew
concerned
about
a
possible
systemic
failure
reminiscent
of
the
2022
crashes.

One
of
the
prominent
voices
with
doubts
was
Fantom
developer
Andre
Cronje.
As
crypto.news

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.
But
when
the
token
crashed,
it
triggered
a
$60
billion
implosion
across
the
Terra
ecosystem
and
kickstarted
a
bankruptcy
domino
through
the
crypto
landscape.

Despite
industry
skepticism,
USDe
has

garnered
user
demand
and
has
a
market
cap
of
nearly
$3
billion
per
DefiLlama.
Also,
the
protocol
added
more
cryptocurrencies
to
its
reserves
and

tied
partnerships
with
liquidity
pool
providers
like
Frax
Finance.