USDe Proof of Reserves are typically provided on a weekly basis by 3rd party independent attestors including leading firms such Chainlink and Llama Risk.
Following the events that have unfolded in the last few hours, we have provided a Proof of Reserves which has been linked below this message.
Each of these independent 3rd parties mentioned above have confirmed USDe remains overcollateralised by more than $60m at >101.0%.
No USDe backing resides directly on Binance or any centralized exchange.
All funds are safe. Maximum transparency.
Ethena
Synthetic dollar protocol backed by delta-neutral spot and derivatives positions
3.5/ 5
Our score
Good
Tickers
USDesUSDe
Pegged to
US dollar
Backing
Delta-neutral (synthetic)
Supply / market cap
$5.92B
Reserve reports
Monthly custodian attestations and weekly Proof of Reserves reporting
Regulated issuer
No
What is Ethena?
Ethena is a synthetic dollar protocol issuing USDe, a crypto-native digital asset pegged to the US dollar and backed by spot crypto assets paired with offsetting short perpetual futures positions. Rather than relying on traditional bank deposits, USDe derives peg stability from this delta-neutral hedging structure. The protocol also issues sUSDe, a staking token that distributes yield generated from staking rewards and futures basis spreads.
Team and capital backing
Ethena Labs was founded by CEO Guy Young, who spent nearly a decade in traditional finance working across investment banking, hedge funds, and private equity. In December 2024, the project raised $100 million through a private sale of governance ENA tokens. Participants in the funding round included Franklin Templeton, F-Prime Capital, Dragonfly Capital Partners, Polychain Capital, and Pantera Capital.
Collateral architecture and rewards
USDe maintains its peg through an automated delta-neutral trade: the protocol buys spot collateral such as staked Ethereum and opens corresponding short derivatives positions across centralized exchanges. To mitigate exchange insolvency risks, collateral is held off-exchange with regulated custodians and multi-party computation wallet providers, including Kraken Custody. Protocol yield stems from three sources: underlying spot staking rewards, positive perpetual funding rates, and yields on reserve assets. When users stake USDe into the ERC-4626 vault contract, they receive sUSDe, which automatically accrues these protocol distributions over time.
Transparency and availability
Direct minting and redeeming through Ethena Labs requires KYC and AML verification and is restricted to non-US persons. Retail users access USDe and sUSDe secondary markets across decentralized protocols and centralized exchanges such as Binance, Bybit, and Coinbase. Backing assets are audited through monthly custodian attestations and weekly Proof of Reserves reporting. Operational controls have passed an independent SOC 2 Type II examination with zero exceptions noted.
Track record and protocol risks
USDe launched on Ethereum mainnet in February 2024 and accumulated over $30 billion in lifetime mint and redeem volume by October 2026. Circulating supply reached $5.92 billion in March 2026. Despite its growth, the model carries structural trade-offs. The protocol faces funding rate risk, as prolonged negative funding rates reduce protocol revenue and require drawdowns on its reserve fund. Exchange counterparty risks persist despite off-exchange custody. During a market crash on October 10, 2025, USDe experienced volatility, trading near $0.97. Regulatory exposure remains significant: in July 2026, German regulator BaFin barred USDe under the MiCA framework, restricting its distribution across the European Union.
Founders
Guy YoungFounder and CEO
Nearly a decade in traditional finance across investment banking, hedge funds, and private equity.
Best for:Offshore yield seekers holding dollarsDeFi liquidity providers using collateralInstitutional traders managing basis spreads
Pros and cons
Pros
- Independent SOC 2 Type II audit completed with zero operational exceptions noted
- Generates organic yield from basis spreads and staked collateral without lending rehypothecation
- Backing assets remain in institutional custody rather than directly on centralized exchanges
- Processed more than $30 billion in cumulative mint and redemption volume
Cons
- Barred from distribution across the European Union by BaFin under MiCA rules
- Direct minting and redemptions require KYC and exclude users from the United States
- Briefly depegged to $0.97 during market stress on October 10, 2025
- Negative funding rate environments reduce yield and strain the protocol reserve fund
Our review
3.5/5
Good
Ethena delivers capital-efficient, yield-generating synthetic dollars via delta-neutral hedging, but users take on derivatives exchange exposure, basis risk, and severe geographic restrictions.
Ethena issues USDe, a synthetic dollar backed by spot crypto assets combined with short delta-hedged perpetual derivatives positions. Founded by former hedge fund and investment banking executive Guy Young, the protocol went live on mainnet in February 2024. Unlike traditional stablecoins such as Tether (USDT) or Circle (USDC) that rely on cash and Treasury bills, USDe generates revenue by capturing staked asset yields alongside positive basis funding rates across centralized derivative venues.
The system relies on off-exchange custody arrangements, keeping spot collateral with institutional custodians like Copper Clearloop and Kraken Custody rather than depositing it directly on exchange order books. USDe supply reached $5.92B in March 2026, supported by more than $30B in cumulative mint and redemption volume. Transparency processes include weekly Proof of Reserves reporting, monthly custodian attestations, and a SOC 2 Type II audit covering operational security controls. Backers include Franklin Templeton, F-Prime Capital, and Dragonfly Capital, who participated in a $100M private ENA token sale in December 2024.
Significant trade-offs accompany this architecture. In October 2025, USDe experienced a brief depeg down to near $0.97 during broad market volatility. Prolonged negative funding rates can erode protocol yields, forcing reliance on a reserve fund. Regulatory friction has also mounted: in July 2026, Germany's BaFin barred USDe under the European Union's MiCA framework. Furthermore, direct minting and redemption are closed to United States residents and require strict KYC and AML whitelisting.
Ethena suits experienced DeFi participants and derivatives traders who want yield-bearing synthetic liquidity integrated across platforms like Binance, Bybit, and Aave. Conservative users seeking a regulatory-compliant digital cash replacement should instead opt for standard fiat-backed alternatives.
Specs
| Tickers | USDe, sUSDe · unverified |
|---|---|
| Pegged to | US dollar · unverified |
| Backing | Delta-neutral (synthetic) · unverified |
| Yield-bearing | Yes · unverified |
| Regulated issuer | No · unverified |
| Supply / market cap | $5.92B · unverified |
| Reserve reports | Monthly custodian attestations and weekly Proof of Reserves reporting · unverified |
| Redemption terms | Direct mint and redemption restricted to whitelisted users passing KYC/AML; US users prohibited · unverified |
Not disclosed by the provider: Licenses & charters, Chains, Issuer can freeze tokens.
Data from the provider's website and public sources. Fees and availability change; confirm on the official site before you sign up.
Key features
Delta-neutral backing
Maintains a dollar peg by pairing spot asset collateral with short perpetual futures positions on institutional derivatives exchanges.
Yield-bearing sUSDe staking
Distributes staking rewards and futures basis income to users who lock USDe in the protocol vault.
Off-exchange custody
Keeps backing collateral in third-party institutional custody providers rather than holding balances directly on derivatives exchanges.
Independent attestations
Provides weekly Proof of Reserves reports and monthly custodian attestations verifying backing collateral allocation.
Cross-exchange margin integration
Functions as margin collateral on centralized derivatives platforms including Binance, Bybit, Deribit, and MEXC.
Inside Ethena
USDe
A delta-neutral synthetic dollar backed by spot crypto assets combined with short derivatives positions across centralized venues.
sUSDe
A staking vault wrapper that accrues protocol revenue derived from derivative funding rates and staked asset rewards.
USDtb
An institutional dollar product backed by BlackRock money-market fund real-world assets.
ENA
The protocol utility and governance token used to participate in risk committee and ecosystem decisions.
Ethena Pay
A mobile application built to let users save, send, and spend synthetic dollars internationally.
Ethena screenshots
What users say about Ethena
There is not enough feedback to evaluate user sentiment or identify main themes regarding the product.
Based on 1 Reddit posts and comments from the last 12 months, checked Oct 23, 2026. These are posts by users on other sites, not reviews submitted on CryptoReview.
User reviews
No user reviews yet. Have you used Ethena? Share your experience below.
Funding and investors
$100MTotal raised
1Round
5Investors
-
Private Sale Dec 2024 $100M
FAQ
Who founded Ethena?
Ethena was founded by Guy Young, who serves as CEO of Ethena Labs. He worked in traditional finance across investment banking, hedge funds, and private equity for nearly a decade before founding the protocol.
How does USDe maintain its peg?
USDe maintains stability through delta-neutral hedging. The protocol pairs deposited spot backing assets with short perpetual and futures positions to offset cryptocurrency price fluctuations.
Who can mint and redeem USDe directly?
Direct minting and redemption require completing KYC and AML verification for protocol whitelisting. Users in the United States and jurisdictions restricted under regulations like MiCA cannot access direct minting.
Has USDe ever depegged?
Yes. On October 10, 2025, USDe briefly traded near $0.97 during an episode of broader market volatility.
Does Ethena have a native token?
Yes, Ethena uses ENA as its native governance and utility token. It also offers sUSDe as a yield-bearing staking wrapper for USDe.
How does sUSDe generate yield?
sUSDe earns protocol rewards generated from consensus and execution rewards on staked backing assets, basis spreads on dated futures, and perpetual funding rates.
Latest from Ethena on X
We are of a potential security incident related to Binance.
As a reminder all collateral with exposure to exchanges resides in off- exchange custodians, not directly with the exchange themselves.
As we learn more details on the incident we will provide updates here.
As a reminder all collateral with exposure to exchanges resides in off- exchange custodians, not directly with the exchange themselves.
As we learn more details on the incident we will provide updates here.
Since launch, Ethena has generated over $800 million in rewards deployed throughout the Ethena USDe ecosystem. https://t.co/eiAk0VMN0T
Introducing Earn+: up to 12% rewards on your dollars in a single click.
Available exclusively on @EthenaPay. https://t.co/RgF7kOrQ4G
Available exclusively on @EthenaPay. https://t.co/RgF7kOrQ4G
USDe is now live on @XLayerOfficial and OKX @wallet, with one-click USDe looping in OKX Wallet coming soon.
The first USDe integration on X Layer is the @aave v3 instance allowing OKX wallet users to access USDe directly onchain.
This is the first time the millions of users on OKX Wallet will be able to access Ethena's product suite.
The first USDe integration on X Layer is the @aave v3 instance allowing OKX wallet users to access USDe directly onchain.
This is the first time the millions of users on OKX Wallet will be able to access Ethena's product suite.
Recent public posts from @ethena, shown as published. Not reviewed or endorsed by CryptoReview.
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