Following criticism of Ethena’s USDE stablecoin, which brought back memories of the Terra blockchain’s Anchor protocol failure, Ethena backer Arthur Hayes introduced a risk tracker by intotheblock.com that monitors aspects like the token’s adherence to its U.S. dollar peg.
Arthur Hayes Introduces New 'Risk Radar' for Ethena's USDE Stablecoin
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Intotheblock.com’s Ethena Risk Radar Dashboard
At the time of reporting, Ethena’s recently launched USDE stablecoin boasts a market capitalization of $2.39 billion. The project recently integrated bitcoin ( BTC) as backing for the USDE stablecoin, a move that raised concerns among some community members about potential risks and drew comparisons to the defunct Anchor protocol.
USDE offers a high yield that is similar to the annual percentage yield ( APY) Anchor used to offer but is variable over time. For instance, at press time, Ethena’s USDE yield is coasting along at 17.2% APY. USDE’s APY has risen above 60% in the past and last week it was hovering above 30%. Despite the risk worries, USDE’s supply grew past the 2 billion mark and 390,000 has been added since April 5.
On Friday, Ethena investor Arthur Hayes unveiled the “Ethena Risk Radar” on intotheblock.com. This dashboard tracks the USDE’s adherence to its peg, monitors its price, assesses decentralized exchange ( dex) liquidity, and notes price variations. Additionally, the intotheblock.com Ethena risk page offers insights into volatility distribution, curve pool asset allocation, simulations of dex exit fees, concentration of dex pools, and market depth.
Intotheblock.com’s dashboard also includes a disclaimer stating, “Part of Ethena’s operations include off-chain transactions, which may involve risks not displayed on this dashboard.” This stems from Ethena’s utilization of both decentralized blockchain smart contracts and off-chain systems maintained by Ethena to deliver its services.
What do you think about the Ethena risk radar dashboard? Share your thoughts and opinions about this subject in the comments section below.
