Ethena Labs releases triple USDe attestation 

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

Artificial dollar issuer Ethena Labs Released Three custodial certificates for the assets backing the $2.67 billion powerful USDe token, which is covered by cryptocurrencies including Bitcoin (BTC) and Ether (ETH).

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

The triple certificate shared on May 27 claimed that USDe boasted a support rate of 101.74%, meaning the asset was over-collateralized and could absorb redemptions if every user chose to liquidate, according to the source.

Addressing Ethena USDe concerns

Ethena's post responds to community feedback following the launch of the USDe mainnet in February. Following the debut of the ENA governance token, and the listing of BTC as a hedging asset, many in the community became concerned about a potential systemic failure reminiscent of the 2022 crashes.

One prominent questionable voice 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 commanded a market cap of $18 billion. But when the token collapsed, it triggered a $60 billion implosion across the Terra ecosystem and set off a bankruptcy domino across the cryptocurrency landscape.

Despite industry skepticism, USDe has gained user demand and has a market cap of nearly $3 billion, per DefiLlama. The protocol also added more cryptocurrencies to its reserves and tied up partnerships with liquidity pool providers such as Frax Finance.

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