Ethena Labs is strategically expanding the collateral options for its synthetic dollar, USDe, by integrating high-liquidity assets like BNB, XRP, and Hyperliquid’s HYPE. This move is part of a broader initiative to minimize risks, bolster USDe's stability, and fuel its ambitious growth trajectory, with the project eyeing a $20 billion supply target.
Strengthening USDe Collateral with New Assets
Ethena Labs has introduced an updated Eligible Asset Framework, a rigorous system designed to qualify tokens for supporting its synthetic dollar, USDe. Under this new policy, assets such as BNB, XRP, and HYPE have been approved, with BNB being the first to actively back USDe through this framework. The Ethena Risk Committee established stringent criteria for asset inclusion, demanding over $1 billion in open interest over two weeks, at least $100 million in combined daily spot and perpetual trading volume, and significant market depth (about $500,000 in spot depth and $10 million in perpetual depth). These high thresholds are specifically designed to mitigate slippage and execution risks during portfolio rebalancing, thereby enhancing the overall stability and reliability of USDe.
Ambitious Growth Projections and Market Position
Ethena founder Guy Young holds a highly optimistic outlook for USDe, projecting its supply could reach an impressive $20 billion. This forecast is underpinned by the stablecoin's past performance, particularly its rapid expansion during the Federal Reserve's late-2024 easing cycle when funding spreads against Treasury bills surged. Young anticipates a similar surge if current market conditions align, potentially propelling USDe's supply to the $20 billion mark within a month. This ambitious growth projection comes as USDe celebrates a significant milestone: its listing on Coinbase, greatly enhancing its accessibility within the US market. Currently, USDe stands as the third-largest stablecoin, boasting a circulating supply of $11.8 billion, trailing only USDT and USDC.
