Ethena Labs Releases Triple Attestation for $2.67 Billion USDe Stablecoin

Ethena Labs Releases Triple Attestation for $2.67 Billion USDe Stablecoin

Ethena Labs, the issuer of the synthetic dollar USDe stablecoin, has pledged to publish monthly reports detailing custody and reserve information to enhance transparency. The DeFi startup has released three custodian attestations for the assets backing its $2.67 billion USDe token, which is hedged by crypto-denominated currencies, including Bitcoin (BTC) and Ether (ETH).

According to Ethena Labs, the USDe stablecoin holds $1.31 billion and $1.33 billion of its reserves with Swiss firm Copper Markets AG and CH Europe Digital Solution (CEFFU), respectively. The remaining assets, worth $5.52 million, are managed by Cobo Global HK Limited. Additionally, Ethena Labs maintains a $42.3 million reserve fund for emergency purposes.

The triple attestation, shared on May 27, reported that USDe boasts a 101.74% backing rate, indicating the stablecoin is over-collateralized and can accommodate redemptions if every user chooses to liquidate their holdings.

Addressing Concerns Over USDe

This announcement comes in response to community feedback following the USDe mainnet launch in February. The launch included the debut of the governance token ENA and the integration of BTC as a hedge asset, raising concerns among some community members about potential systemic failures similar to the 2022 cryptocurrency crashes.

One notable skeptic was Fantom developer Andre Cronje, who, as reported by, drew comparisons 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 but crashed, causing a $60 billion implosion across the Terra ecosystem and triggering widespread bankruptcy in the crypto landscape.

Positive Market Reception and Future Plans

Despite the skepticism, USDe has attracted significant user demand, achieving a market cap of nearly $3 billion, according to DefiLlama. The protocol has also expanded its reserves to include more cryptocurrencies and established partnerships with liquidity pool providers like Frax Finance.

Ethena Labs’ commitment to transparency and robust collateralization aims to reassure users and stakeholders of the stability and reliability of the USDe stablecoin, positioning it as a secure option in the volatile cryptocurrency market.


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