Ethena’s ENA token leaped over 12% on Saturday following news that StablecoinX Inc. secured an additional $530 million capital raise. The move is part of StablecoinX’s ongoing accumulation strategy for ENA, significantly increasing its token holdings in the Ethena ecosystem.

StablecoinX expands ENA holdings

StablecoinX has now raised a total of $895 million in private investment in public equity (PIPE) financing. This funding is expected to give the firm control of more than 3 billion ENA tokens once transactions close, positioning the company as a major player in Ethena’s ecosystem. Marc Piano, Director at the Ethena Foundation, commented:

“This additional capital strengthens ecosystem resilience, deepens ENA liquidity, and supports the sustainable growth of USDe, USDtb, and future Ethena products.”

The increase in scale will also allow StablecoinX to expand into more institutional channels, attract coverage from leading investors and analysts, and build a top-tier leadership team.

StablecoinX stated that this move is part of a deliberate, long-term capital allocation strategy, designed to maximize exposure to the rising demand for digital dollars while compounding ENA growth for stakeholders.

Buyback program to support ENA price

Consistent with the approach taken during its initial PIPE raise, StablecoinX will use the new cash proceeds to acquire tokens directly from an Ethena Foundation subsidiary. Ethena confirmed that the subsidiary will initiate a $310 million buyback over the next six to eight weeks through third-party market makers.

At current market levels, this new program, along with liquidity contributions from third-party PIPE investors, represents about 13% of ENA’s circulating supply.

This buyback is in addition to the earlier program completed over the past six weeks, which absorbed around 7.3% of the supply. Importantly, the Ethena Foundation retains veto power over any future ENA sales by StablecoinX.

Defiance Capital CEO Arthur Cheong commented:

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“This is the most token holder-aligned DAT financing structure among all the DAT raises we’ve seen.”

Strengthening alignment between StablecoinX and Ethena

The relationship between StablecoinX and the Ethena Foundation emphasizes strategic alignment and long-term value creation. Future capital raises aimed at acquiring more locked ENA will channel proceeds directly into purchasing spot ENA, further reinforcing market demand.

The buybacks and treasury commitments create ongoing, programmatic support for ENA’s token price while also instilling confidence in investors. By securing nearly $900 million in financing tied directly to ENA and implementing structured buybacks, StablecoinX is strengthening both the liquidity profile and institutional credibility of the token.

Best example of DeFi legos today

The market responded swiftly, with ENA climbing over 12% after the announcement as traders interpreted the large-scale buyback and capital raise as a sign of strong institutional backing.

Ethena has established a significant presence in the DeFi sector by offering high-yield opportunities and attracting rapid capital inflows in 2025. Its synthetic stablecoin, USDe, crossed $12 billion in supply this year, marking it as one of the fastest-growing assets in the market and the third-largest stablecoin by market capitalization.

The platform’s unique approach allows users to stake their USDe to receive sUSDe, with current staking rewards yielding about 8–9% APY for sUSDe and up to 29% APY for core staking incentives, making it a popular choice among yield-seeking investors.

The ecosystem has also benefited from substantial institutional adoption, multi-chain integrations, and strategic partnerships, such as with Aave and Pendle, which further enhance liquidity and capital efficiency for users.

As of August 2025, Ethena reported more than $500 million in cumulative protocol revenue, and weekly revenue peaked at $13.4 million, highlighting its performance and status as a leader among yield-generating DeFi protocols. As BlockWorks cofounder Jason Yanowitz stated:

“The success of Ethena (issuer) + Pendle (yield market) + Aave (money market) feels under discussed. By far the best example of defi legos that exists today”

Treasury Secretary Scott Bessent’s endorsement of dollar-pegged stablecoins creates a pathway for up to $34 trillion to flow into decentralized finance protocols such as Ethena, Ether.fi, and Hyperliquid.

Arthur Hayes reported in his Aug. 27 blog post that Bessent aims to redirect capital from the $13 trillion Eurodollar system and $21 trillion in Global South retail deposits into stablecoin infrastructure that purchases Treasury bills.

Yet, he said that this strategy addresses two problems: the Treasury’s inability to track Eurodollar flows and the need for price-insensitive buyers of government debt.

The plan leverages US social media platforms as distribution channels for stablecoin adoption. Meta’s WhatsApp could deploy crypto wallets to billions of users worldwide, enabling seamless transactions with stablecoins while bypassing local banking systems.

DeFi protocols positioned for “secular rise”

Stablecoin issuers must invest deposits in Treasury bills to maintain dollar parity, creating guaranteed demand for government debt.

Tether earns a net interest margin of 4.25% to 4.5% by holding T-bills, while paying no interest on USDT tokens. This business model scales directly with deposit growth, providing Bessent with price-insensitive buyers for short-term government securities.

Bessent can weaponize dollar dominance to force compliance with the adoption of stablecoins.

One example mentioned by Hayes is threatening to exclude foreign banks from Federal Reserve swap lines during financial crises. This move would push Eurodollar deposits toward US-regulated stablecoin platforms.

In the case, Hayes projects a total stablecoin circulation of $10 trillion by 2028. In this scenario, he argued that three protocols are poised for a “secular rise.”

The first is Ethena, which operates the synthetic dollar system USDe to generate yields by shorting crypto derivatives against long positions. As of press time, Ethena had $12.4 billion in total value locked (TVL) in the protocol.

Road to 25% market share

The analysis forecasts that USDe could achieve a 25% market share of total stablecoins, potentially reaching a supply of $2.5 trillion.

Hayes also mentioned Ether.fi. The protocol offers stablecoin spending through Visa-powered debit cards, allowing users to spend their crypto anywhere Visa is accepted.

The platform earns revenue at a ratio comparable to JPMorgan’s 1.78% fee-to-deposit ratio and can also capture decent value in the expansion of the US dollar-pegged stablecoin market.

The third protocol mentioned in the post is Hyperliquid. The protocol dominates decentralized perpetual trading, with a 63% market share.

In addition, Hayes cited that Hyperliquid processes daily volume representing 26.4% of the total stablecoin supply in trading activity.

Considering his $10 trillion prediction, the way these three protocols interact with stablecoins could heavily benefit them and their native tokens.

Mentioned in this article

USDe has set a new industry record by hitting $10 billion in total value locked (TVL) in just 500 days, making it the fastest stablecoin in history to reach that milestone.

The protocol behind USDe, Ethena Labs, posted:

“everyone wants to know what we’d say if we didn’t reach $10b supply

i guess we’ll never know”

The GENIUS behind the rise of USDe

USDe’s rapid climb has coincided with the passing of the GENIUS Act, the Guiding and Establishing National Innovation for U.S. Stablecoins Act, which represents the first comprehensive federal framework for stablecoins in the United States.

Enacted on July 18, 2025, it imposes strict new rules on issuers, including 1:1 reserve requirements in low-risk assets, robust federal oversight for large issuers, and strong consumer protections such as priority repayment rights in the event of failure.

The most impactful provision of the ACT, however, and the catalyst behind the rise of USDe, is the prohibition on regulated issuers paying yields on stablecoins, as CoinFund president Chris Perkins told CryptoSlate:

“Under GENIUS, stablecoins do not pay interest to end users, and without interest, stablecoins are depreciating assets. So, holders will seek yield. And that’s where DeFi comes in. If the Treasury Department’s projections are correct and trillions of stablecoins come into the system, expect DeFi summer on steroids as users seek to maximize yield by engaging across a variety of yield strategies. Users will be drawn to yield-bearing vaults, and they will commission AI agents to optimize their returns.”

This ban on yield payments is causing a profound realignment in the stablecoin market. Capital that once flowed to traditional, yield-paying stablecoins such as USDC has been seeking alternatives, and much of it has landed with USDe. As prominent crypto trader, Cas Abbé, pointed out:

“The reason behind this growth is GENIUS Act approval, which prohibit issuers to provide yields on stablecoins.

Due to this, big money has now shifted to $USDe which provides lucrative yield.”

DeFi yield opportunities fuel demand

Ethena Labs has been able to attract this demand thanks to continued yield offerings via decentralized finance (DeFi) mechanisms, which fall outside the restrictions placed on federally supervised issuers. The result is a massive inflow of institutional and retail capital, propelling USDe past many of its competitors. The ENA governance token has also experienced a price appreciation of over 100% in the past month.

USDe’s $10 billion milestone is a testament to how dramatically the GENIUS Act has reshaped the stablecoin landscape. While the law tightens controls and imposes new safeguards, it has also created opportunities for nimble, DeFi-native protocols to capture yield-hungry capital, proving that regulatory shifts don’t have to stifle innovation.

Mentioned in this article

Venture capitalists are forming a new firm based on accumulating stablecoin-focused crypto project Ethena (ENA).

Special purpose acquisition company TLGY Acquisition, announced early on Monday that it had entered into an agreement for a business combination with StablecoinX Assets.

The two companies agreed to a roughly $360 million private investment in public equity (PIPE), including a $60 million investment from the Ethena Foundation itself, plus contributions from other high-profile investors in the space like Pantera Capital, Galaxy Digital, Wintermute and more.

According to the press release, the VCs believe in “large-scale ENA accumulation” in order to provide shareholders exposure to the “secular stablecoin supercycle.”

Says Young Cho, CEO of both TLGY and SC Assets,

“As a top issuer of digital dollars alongside Tether and Circle, Ethena is a direct beneficiary of the growth in stablecoin adoption… But it is currently difficult for investors to capitalize on its strong position since the native token ENA is difficult to access in traditional capital markets. This transaction gives public market investors transparent, well-governed access to the Ethena ecosystem.

Deploying capital to accumulate ENA at scale is a deliberate, multiyear capital allocation strategy that will enable StablecoinX to capture the value driven by the secular surge in demand for digital dollars while compounding intrinsic value per share.”

At time of writing, ENA is trading at $0.53, up over 100% in July so far.

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Ethena Labs reached $290.2 million in total protocol revenue on July 9, trailing only Tether, Circle, and Sky among stablecoin issuers. 

Token Terminal data show that the stablecoin issuer reached $100 million in cumulative revenue 251 days after its launch, making it the second-fastest protocol to cross this threshold.

Daily fees averaged $3.1 million during the past month as traders continued to mint and hedge the synthetic-dollar token USDe. Ethena’s path to nine-figure revenue took 251 days, faster than Uniswap’s 980-day sprint in 2020 but slower than memecoin launchpad Pump.fun, which hit the mark in 217 days late last year. 

Core income is generated by carrying long spot and short perpetual futures positions across multiple exchanges, a delta-neutral strategy that converts funding-rate spreads into protocol earnings credited to stakers of the yield token sUSDe.

Back-end Treasury data shows that 94% of backing assets remain on centralized venues, where Ethena’s automated execution system balances collateral and hedges in real time. The remaining collateral is held in liquid-staking tokens to capture staking rewards while maintaining a neutral net exposure. 

The protocol redirects 20% of gross fees to buy ENA on the open market, a mechanism that has burned 58 million tokens since February, according to on-chain trackers.

SEC dialogue on payment stablecoin status

Ethena’s General Counsel, Zach Rosenberg, and attorneys from Morrison Cohen met with the US Securities and Exchange Commission’s (SEC) Crypto Task Force on July 1 to request clarity on “synthetic dollars,” such as USDe. 

A meeting memorandum released by the SEC shows that the team argued that USDe functions as a payment instrument rather than a security because holders do not rely on the issuer’s efforts for profit and because redemption rights track underlying reserves, not the issuer’s balance-sheet performance. 

The submission cites two pending bills, the GENIUS Act and the STABLE Act, that would carve out a federal licensing lane for payment stablecoin issuers. Ethena told staff that USDe falls outside both drafts because the token can fluctuate slightly around $1 and carries no legal promise of par redemption, leaving it in regulatory limbo.

Company representatives urged the commission to treat synthetic dollars as a separate class and to coordinate with bank regulators if Congress finalizes a payment stablecoin framework. 

Ethena remains barred from US retail distribution pending formal guidance, so new dollar inflows primarily come from offshore funds and market-making desks that hedge their exposure on centralized exchanges. 

The protocol’s revenue pace slowed in May when average perpetual funding spreads compressed below an 8% annualized rate. Still, fee intake rebounded to $3.8 million per day in early July as renewed long-bias returned the basis to double-digit territory.

Ethena’s request for formal SEC feedback remains under review, according to the meeting log.

Mentioned in this article

In a move that could reshape the way we use Telegram for financial transactions, Ethena Labs is partnering with the TON Foundation to introduce its synthetic dollar stablecoins—USDe and sUSDe—to the TON blockchain. Since Telegram connects over 1 billion users every month, this collaboration has the potential to offer a variety of new financial tools directly within the familiar messaging app.

A Closer Look at the Stablecoin Rollout

Rebranding for the TON Ecosystem

For the TON community, sUSDe will be rebranded as tsUSDe. Both USDe and tsUSDe will be supported across a range of Telegram-friendly wallets, including:

1. Telegram’s Built-in Custodial Wallet: Ideal for users who want straightforward crypto management.

2. TON Space: A self-custodial wallet for those who prefer full control over their assets.

3. Third-Party Wallets (Tonkeeper, Tonhub, and MyTonWallet): Expanding accessibility and encouraging broader adoption within the TON ecosystem.

This multi-wallet strategy is designed to meet the varying levels of comfort people have with holding their own assets while making synthetic stablecoins more accessible to Telegram’s global community.

Earning Yield with tsUSDe

One highlight of this partnership is a 10% APY on tsUSDe holdings, offered through participating wallets. As of early May 2025, users with non-custodial wallets (like Tonkeeper or TON Space) already receive weekly TON token rewards, with more wallets scheduled to join soon. These incentives are in addition to Ethena’s usual sUSDe yield mechanisms, creating extra ways for users to earn.

Source Ethena

Introducing “USDT Earn”

On top of that, Ethena plans to roll out a “USDT Earn” feature. This will let people deposit their Tether (USDT) and collect returns tied to the performance of USDe. In other words, if you hold USDT but still want to tap into Ethena’s synthetic stablecoin ecosystem, you’ll have an opportunity to earn extra yield.

Boosting TON’s DeFi Scene

By bringing Ethena’s synthetic assets on-chain, the partnership aims to reinvigorate TON’s decentralized finance (DeFi) environment. Recent dips in user engagement have prompted the TON Foundation to focus on growing its ecosystem, and offering synthetic stablecoins and yield-earning opportunities could be a step in the right direction. Future development plans include:

• A TON debit card to turn crypto rewards into everyday purchases

• Payment integrations with Apple Pay and other debit services

• User-friendly tools to make peer-to-peer transactions and DeFi activities more accessible within Telegram

What Sets Synthetic Stablecoins Apart?

Unlike traditional stablecoins such as USDT or USDC—which are backed by fiat reserves—synthetic stablecoins like USDe rely on financial derivatives and hedging to stay pegged to the dollar. Ethena uses a delta-neutral strategy to keep its value stable and generatFe yield at the same time. This opens up flexible saving options and is especially appealing for users in economies dealing with inflation or volatile currencies.

Why Telegram’s Fintech Pivot Matters

This move by Telegram fits into a broader trend among messaging platforms, such as WeChat and Line, which have integrated payment features for convenience. Telegram, however, is diving deeper by embracing blockchain-based assets and decentralized wallets. Essentially, it’s aiming to be part instant messenger and part financial hub—all in one app.

Staggered Rollout Throughout May 2025

Ethena’s integration with TON will happen in stages. Initially, tsUSDe and USDe will be compatible with non-custodial wallets like Tonkeeper and TON Space. After that, support will extend to Telegram’s own custodial wallet. Later phases will focus on weaving these synthetic assets into more areas of TON’s DeFi ecosystem, giving users ample ways to trade, lend, and save.

For Ethena, teaming up with the TON Foundation means tapping into a massive user base that extends across the globe. For TON, offering yield-bearing synthetic stablecoins could help bring renewed energy to its blockchain scene.

For Telegram’s hundreds of millions of users—especially those in places dealing with currency risks—these new features may offer a practical way to save, earn yield, and transact in dollar-pegged assets without ever leaving the app they already use daily.

Ethena Labs partners with TON Foundation to integrate USDe stablecoin, aiming to leverage the over 1 billion users on Telegram. Will TONUSDT spring higher, breaking $4? In Q1 2025, TON crypto posted sharp losses.

Crypto thrives when projects collaborate, and developers are eager to build. On Ethereum, Ethena Labs is innovating with its popular delta-neutral stablecoin, USDe, which currently boasts a market cap in the billions.

Meanwhile, after establishing a solid foundation on Ethereum, the TON blockchain is now one of the largest networks globally. With a market cap exceeding $7.7 billion, it has secured a spot in the top 20, although its valuation took a hit over the past four months.

DISCOVER: 20+ Next Crypto to Explode in 2025 

Ethena Labs Partners With TON Foundation

However, based on recent trends and partnership developments, TON may be on the path to recovering its losses. Earlier today, Ethena Labs, the team behind the USDe stablecoin, signed a deal with the TON Foundation to integrate its synthetic stablecoin into the TON ecosystem.

It’s worth noting that the TON ecosystem is expansive and includes the popular messaging platform Telegram. Telegram has played a pivotal role in its success. Presently, over one billion global users can easily access the blockchain and utilize some of its features.

Innovations like Telegram mini-apps, which powered tap-to-earn platforms such as Hamster Kombat, drove TON prices in 2024 as users flocked to participate in the ecosystems of some of the best cryptos to buy.

Now, the focus is on the Ethena Labs partnership. As part of this deal, Ethena Labs aims to leverage the TON blockchain and Telegram’s global user base to drive the adoption of the USDe stablecoin. Like USDT or USDC, the token can be used for payments, savings, and even DeFi.

Introducing the product for a billion people:

Today we announce our partnership with @ton_blockchain to power finance’s most powerful use case:

To send, save and pay with a globally accessible dollar

Internet money, now available for @Telegram‘s billion users

Details below: pic.twitter.com/oFjUvVX1CN

— Ethena Labs (@ethena_labs) May 1, 2025

Will USDe Replace USDT on The TON Blockchain?

Already, USDe boasts a market cap of over $4.5 billion and leads the synthetic stablecoin space.

Unlike USDT and USDC, which are backed by assets like U.S. Treasuries, USDe is collateralized by crypto assets such as Bitcoin, Ethereum, and liquid stablecoins. Additionally, the team employs delta-hedging strategies to ensure that USDe maintains its peg to the U.S. dollar at $1, regardless of market conditions.

USDe is not directly backed by the USD but continues to track the dollar. This feature appeals to purists seeking censorship-free transactions while earning a yield from their stablecoin holdings. The staked version of USDe offers an average APY of 19%, higher than that of popular USD-backed stablecoins.

The rollout of USDe on the TON blockchain is expected to begin in May 2025. There are plans to integrate bank cards and Apple Pay, though these are subject to regulatory approvals.

Will TONUSDT Break $4?

The impact on the TON blockchain remains to be seen, as the network already supports USDT.

According to Tether documents, the Tether Holdings token is highly popular, with a market cap of nearly $900 million.

For TON holders, the focus is on price. If USDe gains traction, transaction volume will likely increase, driving demand for TON, which is used for gas payments.

Although the partnership is highly bullish, the coin remains under pressure, posting deep losses like some of the best Solana meme coins.

(TONUSDT)

The local resistance stands at $3.5, with support at $2.75. If bulls break through $3.5, prices could soar to $4, marking a welcome recovery after the downturn in Q1 2025.

DISCOVER: 11 Best Crypto Presales to Invest in May 2025 – Top Token Presale

Ethena Deal With TON Crypto: Will TONUSDT Surge Above $4?

Germany’s Federal Financial Supervisory Authority (BaFin) has rejected Ethena Labs’ application to issue asset-referenced tokens under the European Union’s Markets in Crypto-Assets Regulation (MiCAR).

The regulator also raised concerns that the sUSDe may constitute an unlicensed security offering.

According to BaFin’s official notice, the application submitted by Ethena GmbH, a Frankfurt-based entity under Ethena Labs’ corporate structure, exhibited “significant deficiencies” in organizational practices and failed to meet MiCAR requirements concerning asset reserves and capital adequacy. 

BaFin immediately imposed enforceable supervisory measures, including prohibiting further public offerings of the USDe token within Germany, and ordered custodians to freeze the token’s reserve assets.

Notably, some stablecoin issuers have been facing difficulties under the MiCA regulation. Major European exchanges delisted Tether USD (USDT) because they were concerned that the token might be non-compliant. However, authorities have not yet deemed USDT non-compliant.

Ordered to stop USDe issuance

However, under a MiCAR transitional provision, Ethena GmbH continued issuing the token in Germany after applying for authorization on July 29, 2024.

Approximately 5.4 billion USDe tokens are currently circulating, most of which were issued before MiCAR’s effective enforcement and outside of Germany.

BaFin clarified that its actions do not affect USDe’s secondary market trading but temporarily restrict redemptions directly through Ethena GmbH. Since January 2025, Ethena BVI Limited, an affiliated entity based in the British Virgin Islands, has also facilitated the token’s issuance.

Moreover, the regulator appointed a special representative to monitor compliance and noted the potential for additional actions, including a ban on public offerings of associated securities.

Securities offering

Beyond operational shortcomings, BaFin expressed a “sufficiently substantiated suspicion” that the sUSDe token qualifies as a security under German law and has been offered publicly without an approved securities prospectus. 

The sUSDe is a yield-bearing stablecoin acquired by staking USDe. BaFin’s concern stems from the financial structure and alleged profit promise embedded in the sUSDe token, which may trigger regulatory classification as a security.

BaFin’s position introduces a regulatory challenge to hybrid instruments like sUSDe, which combine stablecoin mechanics with yield-generation features. The regulator is actively evaluating whether the public distribution of such instruments requires compliance with securities law, including disclosure and prospectus obligations. 

The outcome of this classification could set a precedent for similar crypto assets in the European Union.

Ethena Labs’ response

In response, Ethena Labs published a statement confirming that it had been informed of BaFin’s decision to reject Ethena GmbH’s MiCAR application.

The company acknowledged the decision in a public statement and said it is “evaluating alternative frameworks” for regulatory compliance.

Ethena added:

“Since its inception, Ethena has been exploring various options and jurisdictions when it comes to regulatory frameworks globally. A MiCAR authorization via Ethena GmbH was one of various options we have been pursuing.”

The firm emphasized that the decision does not impact USDe minting and redemption activities facilitated by Ethena BVI Limited, which services the “vast majority” of users.

The company also denied speculation of an asset freeze, asserting that all reserves remain available. It added that it plans to revise its terms of service in the coming week.

BaFin’s rejection reinforces the increasing scrutiny of stablecoins and synthetic yield instruments operating within or targeting European markets following the implementation of MiCA.

Mentioned in this article

The crypto project backed by BitMEX founder Arthur Hayes is launching a new blockchain with Securitize, a US company geared towards the tokenization of real-world assets (RWAs).

In a new announcement, Ethena Labs says it will launch a new Ethereum (ETH) Virtual Machine (EVM) blockchain called Converge within the next three months in partnership with Securitize.

The blockchain project will be geared toward both retail and institutional investors.

Ethena and Securitize plan to migrate their existing blockchain products onto the Converge blockchain.

Says Ethena Labs,

“Ethena will focus their institutional product offerings on Converge and seek to migrate their existing DeFi (decentralized finance) ecosystem which currently boasts just under $6 billion in assets. Securitize, which has already minted nearly $2 billion in RWAs across multiple blockchains, will look to issue existing and future tokenized assets on Converge, and continue to facilitate interoperability across its many protocol integrations.”

Says Guy Young, Ethena founder,

“We’re developing Converge to fill a clear gap in the market as the go-to settlement layer for institutional-grade DeFi and tokenized assets. We see two core use cases for blockchains: settlement for speculation, and the storage and settlement of stablecoins and tokenized assets. While the first category is important, we view the second as a much larger opportunity over the next decade.”

Carlos Domingo, Securitize co-founder and CEO, says increasing regulatory clarity around digital assets is opening up opportunities for traditional finance institutions to enter the crypto space.

He says Converge aims to “seamlessly bridge traditional finance with the opportunity of DeFi.”

“By combining Ethena’s innovation in DeFi with Securitize’s leadership in tokenizing real-world assets, Converge sets a new standard for how institutions can confidently engage with on-chain financial markets.”

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Ethena Labs has integrated Chaos Labs’ data authenticity technology, Edge Proof oracles, to strengthen the risk management framework for its synthetic dollar token USDe.

Edge oracles will independently verify the total dollar value of the USDe’s reserves and the reserve coverage of USDe’s supply and confirm that reserves are governance-approved and delta-neutral. Chaos Labs shared the announcement exclusively with CoinDesk.

USDe, a synthetic stablecoin, maintains a soft peg with the U.S. dollar through an automated delta-hedging strategy that shorts bitcoin and ether perpetual futures to offset changes in the prices of these cryptocurrencies.

The synthetic stablecoin experienced volatility over the weekend, falling to 0.982 against tether and 0.988 against USDC, per Kaiko, amid fears that the protocol has multi-million dollar exposure to Bybit’s ether (ETH) derivatives market. The exchange was hacked late Friday, with a malicious entity draining over $1 billion in ether.

The so-called de-peg, however, was short-lived as Ethena assured investors that all assets backing USDe were held off-exchange and its reserve fund was more than enough to compensate for any losses from the Bybit exploit.

The integration with Chaos Labs adds another layer of credibility to USDe’s reserves, ensuring they stay secure and transparent.

The Edge Proof of Reserves (PoR) oracles will constantly monitor the reserve levels of tokens and check the collateral backing them. This is done by smoothly integrating off-chain data from custodians and centralized exchanges into the on-chain environment, ensuring scalable and robust support for institutional-grade applications.

The integration also provides automated alerts to notify users of any data anomalies or if reserve levels fall below the required thresholds. Verified data is publicly displayed on Ethena’s transparency page and attestor interfaces, keeping stakeholders informed.

“This integration ensures continuous, independent verification of reserves, fostering greater transparency and security for all users. By leveraging real-time, tamper-resistant data, Ethena reinforces its commitment to a robust and reliable synthetic dollar,” the announcement said.

Chaos Labs’ Edge oracle leverages zero-knowledge proofs to ensure security and privacy while providing real-time and transparent data verification, including for reserves held off-chain or across different blockchains.

These oracles have secured over $70 billion in volume, delivering risk management to decentralized finance (DeFi) giants like AAVE, Jupiter, GMX, and Tether.