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

Key Details:

• The system will independently verify the total dollar value of the USDe’s reserves and the reserve coverage of USDe’s supply.
• This will ensure that reserves are governance-approved and delta-neutral.

Chaos Labs shared the news exclusively with CoinDesk.

USDe, a synthetic stablecoin, maintains a soft peg with the U.S. dollar through an automated delta-hedging strategy involving bitcoin and ether futures.

Recently, USDe faced volatility, briefly dropping to 0.982 against tether amid concerns over a multi-million dollar issue linked to Bybit’s ETH derivatives market which was hacked. However, Ethena assured investors that their reserve fund was adequate to cover any losses incurred.

The integration with Chaos Labs reinforces the credibility of USDe’s reserves, ensuring they remain secure and transparent.

What Does the Integration Offer?

• Continuous, independent monitoring of reserves.
• Automated alerts for data anomalies or reserve level drops.
• Verified data shared publicly, enhancing transparency for stakeholders.

In summary, this integration is seen as a significant step in promoting user confidence in the stability of Ethena’s synthetic dollar.