James

Head of Ethena Foundation (@EthenaFndtn) | If you can’t measure it, you can’t improve it | Opinions expressed are my own.

[Ethena @ethena]

Here's what happened @ethena in May:

• Crossed $500m+ in total Whitelabel supply across @JupiterExchange, @megaeth, and @SuiNetwork.

• Launched dedicated Ethena markets on @JupiterExchange and @KaminoFinance. Combined market size crossed $1b within days of launch.

• ENA went live on @Solana via @SunriseDeFi.

• Ethena's TVL on @Solana crossed $500m, up from $50m a month ago, making it Ethena's second-largest chain outside of Ethereum.

• USDe supply grew over 15% in the last 30 days.

• USDtb supply is back above $1 billion, up over 70% in the last 30 days.

• Surpassed $33b in cross-chain transfer volume across all Ethena assets via @LayerZero_Core.

• PT-srUSDe by @Stata_Markets hit $45m supplied on @aave.

• @hyenatrade crossed $2m in all-time USDe rewards to traders.

• @ManifestFinance chose Ethena to back USH, its real estate-backed token.

• @etherealdex expanded user testing for Ethereal Predict, a USDe-native prediction market that lets users combine outcomes into multi-leg positions.

• Published an analysis of the basis trade on gold perpetuals, following the recent post on USDe backing diversification.

• Updated the transparency page with a more detailed breakdown of USDe's backing reserves.

• Published a security post on the recent rsETH incident, covering what happened, the response, and the design decisions that protect USDe.

• Deprecated USDe and sUSDe bridging for several chains focusing security and operational resources where USDe activity is most meaningful.

[LayerZero @LayerZero_Core]

.@ethena's $USDe just surpassed $20B in cross-chain transfer volume on LayerZero, bringing their lifetime volume across all Ethena assets over $30B.

This brings total value transferred across LayerZero to over $265B.

[Birdeye Data @birdeye_data]

https://t.co/AOLjq2bjYI

[James @_OrgChaos]

@KingoCat22 @techAU You might want to check their A380 and 787 fleet... None of them have wifi.

[crypto.news @cryptodotnews]

NEW: Ethena $USDe on Solana jumps over $450M in just 4 days, now nearly 10x the supply on Hyperliquid L1, per DefiLlama.

[James @_OrgChaos]

@lex_node Until communication between lawyer and AI deemed open to discovery.

[Ethena Ecosystem @Ethena_Eco]

Aavethena

[Ethena @ethena]

As we have not yet received a satisfactory root cause analysis for the rsETH incident, we are extending the temporary pause on the OFT bridge.

We understand this is frustrating, but believe this is the prudent step to ensure safe cross-chain movement of your assets.

We have published a new Proof of Reserves, verified by our four independent third-party attesters: Chainlink, Chaos Labs, LlamaRisk, and Harris & Trotter, confirming USDe collateral backing remains >100%.

Results are available on our transparency page and the dashboards below:
https://t.co/ODHHtfeuhu
https://t.co/vREU6OB8GB
https://t.co/liZFZzapc3

We will continue to provide updates as we receive them.

[Ethena @ethena]

Out of an abundance of caution we are temporarily pausing our LayerZero OFT bridges from Ethereum mainnet until the root cause of the rsETH incident has been identified.

We expect the pause to last ~6 hours and will provide updates on this temporary pause as we receive them.

To reiterate, we can confirm Ethena has no exposure to rsETH, and remains >101.0% overcollatereralised.

Proof of reserves are typically provided on a weekly basis but we will be providing a refreshed version in the next few hours given the existing circumstances.

[James @_OrgChaos]

This, but also while everything is on fire.

[Chris Bakke @ChrisJBakke]

Running a company:

2020: can you survive a pandemic?

2021: still here? we’re going to give all of your competitors $100m series A rounds.

2022: wow, you made it? okay, all engineers cost $600,000/year now.

2023: nice job! okay, SVB failed and we’re going to take away your bank account.

2024: a survivor I see. but can you pivot from ai to crypto to defense tech back to ai-enabled defense tech in a 12 month period to stay relevant?

2025: unfortunately all of your competitors have raised $2b series B rounds. oh and only 500 engineers are relevant and they cost $100m/yr each.

2026: well, well, well. you’re still in business? let’s deploy the thunderclap of godlike LLMs from the heavens so all of your customers can rebuild your app in 2 hours. can you survive?

[Ethena @ethena]

USDe reserves are evolving: reducing concentration and building resilience across market cycles with a diversified collateral base.

Four additions to the collateral backing are detailed below for consideration by the risk committee, each a natural extension of existing Ethena allocations:

→ Overcollateralised institutional lending
→ High quality liquid RWAs beyond TBills
→ Equity & commodity basis exposure
→ Prime lending

Read more below on proposed updates:

[G | Ethena @gdog97_]

Since 10/10 Ethena was poorly positioned for what has been a material regime change.

In the last few months we have been building out the infrastructure to securely access alternate sources of safe and scalable collateral to better position the business for these periods of downturn.

This is an important piece of work which should have been done a long while ago, but now positions USDe backing to experience less rate volatility during periods of suppressed crypto native interest rates.

Going forward, once approved by the independent risk committee, USDe will have access to:

-Basis on non crypto assets including commodities and equities

-Institutional triparty collateralized lending via @coinbase @krakenfx @Anchorage and others

-Prime lending across CeFi and @HyperliquidX

-Liquid high quality non-tbill RWA exposures

Each of the above represent multi-billion capacity opportunities with that will now sit alongside the existing USDe collateral base to improve the product resilience through the cycle.

[ZachXBT @zachxbt]

1/ Welcome to the Circle $USDC files.

$420M+ in alleged compliance failures since 2022, including fifteen cases of the US-regulated stablecoin issuer taking minimal action against illicit funds.

[Ethena @ethena]

Today, @aave announced the launch of Aave V4.

Ethena will have a dedicated ecosystem environment at launch with two Spokes, the most of any individual ecosystem. sUSDe, USDe, PT-sUSDe, and PT-USDe supported as collateral.

Aavethena 👻

[James @_OrgChaos]

Hello Officer, I’d like to report a murder.

[toly 🇺🇸 @toly]

@CAgovernor 2 miles of California high speed rail?

[Ethena @ethena]

FTX first popularised the USDT-USD perpetual where traders could bet against the solvency of USDT.

On the other side, those who were long consistently collected 10%+ APY on funding from the naive truthers betting on the downfall of Tether.

@felixprotocol has launched the first USDe perpetual where you can now do the same.

[stevemur @stevemur]

Glaciers shrinking: BAD
Glaciers growing: ALSO BAD

DEMAND STATIC GLACIERS NOW

[G | Ethena @gdog97_]

Ethena has no ADL "deals". Never has. ADL risk has been in the risk section of our docs since day one:
https://t.co/UgjQjlsmRG

ADL implementation varies by exchange, but generally follow a similar waterfall of applying ADL to accounts with the:
i) highest leverage
ii) highest roe/ unrealised pnl

In contrast to others, Ethena sweeps pnl daily and runs zero leverage.

It is therefore considered one of the lowest risk accounts on the exchange and sits at the bottom of the ADL waterfall as a result.

As far as we are aware, there have not been any ADLs on BTC or ETH on the venues Ethena executes since 2018 on OKX. The vast majority of the backing sits in BTC and ETH on venues with a 8yr+ track record of not applying ADL to these assets, including on 10/10.

Ethena has no special ADL deals, just basic risk management.

[James @_OrgChaos]

@elonmusk @Qantas are you paying attention?... The only major airline I've flown with zero WiFi on your A380 and 787 Dreamliner fleet.

[James @_OrgChaos]

@austinahlman People that have never built shit, telling people that have built shit, to let other people that have never built shit, run their shit.

Make it make sense.