Survive

USDe

Ethena

<ul class="news-points">
 <li><strong>Ethena’s USDe protocol demonstrates robustness via adequate reserve funds amid market challenges. </strong></li>
 <li><strong>Negative funding rates pose a significant risk to USDe’s stability and reserve fund sustainability. </strong></li>
 <li><strong>Monitoring Keep Rate is vital to fortify USDe’s resilience against funding rate fluctuations. </strong></li>
</ul>
<p>Ki Young Ju, an On-chain analyst, recently posted insights on X platform regarding the stability of Ethena’s synthetic dollar protocol, USDe. According to Ki Young Ju’s analysis, the protocol’s reserve fund appears capable of weathering challenges akin to the 2022 FTX/LUNA scenario, as long as its market cap remains below $3 billion.&nbsp;</p>
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   <p lang="en" dir="ltr"><a href="https://twitter.com/search?q=%24USDe&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$USDe</a> stress test:<br><br>Their reserve fund can handle prolonged negative funding rates like in 2022's FTX/LUNA scenario as long as its market cap stays below $3B (currently $2.4B).<br><br>The protocol is robust if sufficient reserve funds relative to its market cap. <a href="https://t.co/dQLZOqo2o5" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/dQLZOqo2o5</a></p>— Ki Young Ju (@ki_young_ju) <a href="https://twitter.com/ki_young_ju/status/1780401172224016823?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">April 17, 2024</a>
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<p>Currently, the market cap stands at $2.4 billion, indicating that the protocol’s strength lies in maintaining an adequate reserve fund relative to its market capitalization. This highlights the protocol’s robustness…</p>
<p>The post <a href="https://coinedition.com/usde-stability-check-will-ethena-survive-funding-rate-challenges/" rel="noopener noreferrer nofollow">USDe Stability Check: Will Ethena Survive Funding Rate Challenges?</a> appeared first on <a href="https://coinedition.com" rel="noopener noreferrer nofollow">Coin Edition</a>.</p>

USDe Stability Check: Will Ethena Survive Funding Rate Challenges?

Coin Edition

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