USDe Holders Should Monitor Ethena’s Reserve Fund to Avoid Risk: CryptoQuant

CryptoQuant warns USDe holders to monitor Ethena's reserve fund due to potential negative funding rates. Ethena's current $32.7 million reserve fund may only be sustainable if USDe's market cap stays below $4 billion. The keep rate should remain above 32% in a bear market.

https://www.coindesk.com/business/2024/04/18/usde-holders-should-monitor-ethenas-reserve-fund-to-avoid-risk-cryptoquant-warns/

Is Ethena's USDe stablecoin at risk? How can USDe holders monitor and safeguard against potential negative funding rates? What is your opinion on this?

https://www.coingecko.com/en/coins/ethena-usde

1 thought on “USDe Holders Should Monitor Ethena’s Reserve Fund to Avoid Risk: CryptoQuant”

  1. Never invest more than you are willing to lose. All these stablecoins work on paper but very few can withstand a true bear market.

    To be clear, I am not saying Ethenas model won’t work, just reminding you to manage your risk.

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