Ethena Labs has expanded the record of eligible property 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 issues
Based on the Ethena Danger Committee, the framework addresses liquidity issues in spot and perpetual futures markets. The committee famous that the thought-about property should clear a minimal threshold earlier than they are often deemed appropriate for the hedging technique that underpins USDe.
Below the coverage, an asset should present greater than $1 billion in open curiosity over a two-week interval, no less than $100 million in mixed each 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 cut back the danger of slippage and execution delays that might happen throughout portfolio rebalancing.
Though approval alerts {that a} token meets the framework’s necessities, the committee clarified that onboarding could 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.
Based on him, USDe’s circulation almost doubled in the course of the Federal Reserve’s late-2024 easing cycle, when funding spreads in opposition to 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 related situations emerge within the present cycle.
The projection comes as USDe secures a list on Coinbase, marking a big milestone for the mission’s accessibility within the US market.
USDe is the third-largest stablecoin, trailing solely USDT and USDC, with a circulating provide of $11.8 billion, in line with CryptoSlate information.
