Ethena Labs Integrates Chaos Labs’ Edge Proof Oracles for USDe Risk Management
Ethena Labs has integrated Chaos Labs' Edge Proof oracles to enhance the risk management framework of its synthetic dollar token, USDe.
- Edge oracles will independently verify the total dollar value of USDe's reserves.
- They will confirm that reserves are governance-approved and delta-neutral.
- USDe maintains a soft peg with the U.S. dollar through automated delta-hedging strategies involving shorting bitcoin and ether perpetual futures.
- The token faced volatility, dropping to 0.982 against tether and 0.988 against USDC amid concerns about exposure to Bybit's hacked ether derivatives market.
- Ethena assured investors that all assets backing USDe were held off-exchange and sufficient to cover potential losses from the hack.
- The integration ensures continuous verification of reserves, enhancing transparency and security for users.
- Real-time data verification includes off-chain reserves and operates using zero-knowledge proofs for privacy.
- Chaos Labs' oracles have secured over $70 billion in volume across major DeFi platforms.
