Real-time Risk Monitor for Ethena USDe Stablecoin Now Live

Arthur Hayes, the founder of the BitMEX exchange, recently presented a risk radar chart for Ethena Labs’ USDe stablecoin with on-chain provided by intelligence platform IntoTheBlock. In a recent post on X, Colin Wu’s team called attention to this development.

Arthur Hayes shared the Ethena on-chain risk radar chart produced by intotheblock, including USDe Peg Monitor, sUSDe Price Performance, USDe DEX Liquidity, USDe Price Deviation By Protocol/Pool, Volatility Distribution, Curve Pool Asset Distribution, DEX Exit Fee Simulation, DEX…

— Wu Blockchain (@WuBlockchain) April 13, 2024

The comprehensive chart offers a multifaceted view of USDe stability and performance. It covers crucial metrics such as USDe Peg Monitor, sUSDe Price Performance, and USDe DEX Liquidity.

The radar chart also features analyses of USDe price deviation by protocol or pool, volatility distribution, and curve pool asset distribution. Additionally, it tracks DEX exit fee simulation and DEX pool concentration.

Moreover, the radar chart illuminates critical aspects like USDe and stETH Market Depth, offering valuable insights for traders and investors navigating the Ethena ecosystem.

Notably, this effort comes amid increased scrutiny of Ethena’s USDe sustainability, as the protocol offers a staggering 37% yield for stakers. Ethena’s strategy involves capitalizing on price differentials between spot and futures markets, proving especially lucrative amid surging token prices and escalating funding rates.

Industry pundits like Ki Young Ju have expressed concerns that Ethena’s strategy could survive in a bull market but are unsure of its stability in a bear market. This skepticism arises amid comparisons to Terra Luna’s UST, whose enticing rates later led to its collapse in 2022.

At press time, USDe’s cap has reached over $2.39 billion, up by over 400% from under $350 million in late February. In March alone, Ethena boasted revenue that surpassed an impressive $25 million.

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