USDe maintains full collateralization amid first market stress test
Ethena Labs, the entity behind the USDe synthetic dollar, has released the assets first attestation report, which shows the stablecoin remained fully collateralized over the past week despite significant turbulence in the crypto market.
The report follows a brief depegging incident during a market-wide downturn during the weekend.
Attestation report
As of April 15, the current supply of USDe stands at $2.358 billion. The aggregate value of assets, comprising Bitcoin, Ethereum, liquid-staked Ethereum, and Tethers USDT stablecoin, securing the issued tokens totals $2.365 billion, reflecting an excess reserve of $32.7 million.
Three distinct custodians hold these assets. Copper manages $1.279 billion, Ceffu oversees $1.066 billion, and Cobo handles $4.871 million. All assets backing USDe are securely stored off-exchange within institutional-grade custodial solutions.
Furthermore, $15.65 million is in the Ethena mint/redeem contract, while $32.7 million is in the reserve fund address.
The protocol said the attestation report represents its efforts towards enhanced transparency and has committed to delivering monthly updates to the public.
Stress test
The release of the attestation report comes after USDe experienced a brief depegging event during the weekend amid heavy market volatility triggered by Irans attack on Israel.
On April 13, USDes value plummeted to as low as $0.995 before reclaiming the $1 peg as market conditions improved.
Seraphim Czecker, Ethenas head of growth, lauded USDes resilience during this market turbulence, describing it as passing its inaugural stress test.
However, dissenting voices argue otherwise, asserting that the crypto markets inherent volatility renders the recent price dip as commonplace. Consequently, they suggest the protocol could face heightened risk should the market experience more significant declines.
Eric Forgy, the founder of crypto firm CavalRe, said:
That wasnt a stress test. By crypto standards, that was a typical afternoon. Lets see what happens when ETH has a 40+% daily move.
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Text source: CryptoSlate
