Ethena Labs is broadening the range of accepted assets for its USDe synthetic dollar. Recently added to the approved list are BNB, XRP, and Hyperliquid’s HYPE, marking a significant expansion.
This decision follows the introduction of a new Eligible Asset Framework, establishing defined criteria for tokens to be included in USDe’s collateral backing system.
Addressing Liquidity Concerns
The Ethena Risk Committee developed the framework to mitigate liquidity-related challenges in both spot and perpetual futures markets. According to the Committee, potential assets must meet specific benchmarks before being deemed appropriate for the hedging strategies that support the USDe stablecoin.
The guidelines require assets to demonstrate an open interest exceeding $1 billion over a two-week period, along with a combined daily spot and perpetual trading volume of at least $100 million. Adequate market depth on both sides is also mandatory.
Specifically, the order books should exhibit approximately $500,000 in spot depth and $10 million in perpetual depth, calculated as averages over a two-week span.
The Committee emphasized that these strict requirements aim to lessen the possibility of slippage and delayed trade executions during portfolio rebalancing activities.
Although approval confirms that a token fulfills the Framework’s stipulations, the Committee clarified that immediate onboarding isn’t guaranteed. BNB is the inaugural asset supporting USDe under these new guidelines.
USDe Aiming for $20 Billion Valuation
Ethena’s founder, Guy Young, has expressed an optimistic outlook concerning USDe’s potential growth, suggesting its supply could reach a substantial $20 billion.
According to Young, USDe’s total supply nearly doubled during the Federal Reserve’s easing cycle in late 2024, a period where funding spreads relative to Treasury bills saw a rapid increase, soaring from close to zero to over 20% within weeks.
Considering this pattern, Young predicts that if similar market dynamics arise in the present cycle, USDe’s supply could surge beyond the $20 billion mark within a single month.
This projection arrives shortly after USDe secured a listing on the Coinbase platform, a pivotal achievement enhancing the project’s accessibility within the United States market.
Data provided by CryptoSlate shows that USDe currently holds the position of third-largest stablecoin, positioned after USDT and USDC, with a circulating supply of $11.8 billion.