Ethena's USDe, a synthetic stablecoin, is in the spotlight as it faces challenges similar to those that led to Terra's UST collapse. Unlike traditional stablecoins backed by fiat or crypto reserves, USDe uses a delta hedging strategy to maintain its peg. Two critical metrics to watch are the reserve fund's size and the keep rate. These indicators are essential for assessing USDe's ability to manage extreme market conditions and avoid negative funding scenarios that could jeopardize its stability.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
