Ethena Labs targets $20B USDe growth as it adds BNB, XRP, HYPE to its collateral framework
Ethena Labs has expanded the checklist of eligible belongings to assist its artificial greenback, USDe, by approving BNB, XRP, and Hyperliquid’s HYPE.
The transfer is a part of a brand new Eligible Asset Framework that units clear benchmarks for which tokens can be utilized within the stablecoin’s collateral system.
Liquidity considerations
In response to the Ethena Threat Committee, the framework addresses liquidity considerations in spot and perpetual futures markets. The committee famous that the thought-about belongings should clear a minimal threshold earlier than they are often deemed appropriate for the hedging technique that underpins USDe.
Beneath the coverage, an asset should present greater than $1 billion in open curiosity over a two-week interval, not less than $100 million in mixed day by day spot and perpetual buying and selling quantity, and ample market depth on either side.
Particularly, the order books should show about $500,000 in spot depth and $10 million in perpetual depth, averaged over two weeks.
The committee mentioned these excessive standards purpose to scale back the danger of slippage and execution delays that would happen throughout portfolio rebalancing.
Though approval alerts {that a} token meets the framework’s necessities, the committee clarified that onboarding might not occur instantly. Notably, BNB is the primary eligible asset backing USDe below this new framework.
USDe to $20 billion
Ethena founder Man Younger has shared a bullish outlook for USDe progress, predicting that the asset’s provide might attain $20 billion.
In response to him, USDe’s circulation practically doubled through the Federal Reserve’s late-2024 easing cycle, when funding spreads towards Treasury payments jumped from close to zero to over 20% in just some weeks.
Contemplating this, Younger predicted that the stablecoin’s provide might exceed $20 billion inside a month if comparable circumstances emerge within the present cycle.
The projection comes as USDe secures a list on Coinbase, marking a big milestone for the challenge’s accessibility within the US market.
USDe is the third-largest stablecoin, trailing solely USDT and USDC, with a circulating supply of $11.8 billion, in response to CryptoSlate knowledge.
The put up Ethena Labs targets $20B USDe growth as it adds BNB, XRP, HYPE to its collateral framework appeared first on CryptoSlate.
