Algorithmic / under-collateralized stablecoin
Ethena's assessment for RD-F-069 — scored yellow on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
USDe is not purely algorithmic (no reflexive token backing like UST/LUNA) and is not under-collateralized in the traditional sense. However, it is mechanistically distinct from fiat-backed stablecoins: peg stability depends on (a) positive or neutral perpetual funding rates across Binance/OKX/Bybit/Deribit/Bitget, (b) CEX counterparty solvency, and (c) OES custodian integrity (Copper, Ceffu, Anchorage Digital, Kraken). Reserve Fund: $62M as of end-March 2026, ~1.64% of current $3.79B TVL. Risk Committee estimates $5-7M needed under stress — ~9-12x covered at current TVL. Worst-case historical negative funding streak: 13 consecutive days; only 8.84% of days had combined negative (LST + funding) revenue. Peg stress events: April 2024 (~$0.995), February 2025 Bybit hack ($0.982-$0.988 briefly), October 2025 Binance-specific event ($0.65 on Binance, <30 bps on Curve/Uniswap/Fluid). Rated yellow: not purely algorithmic, but funding-rate dependency and CEX/custodian structural risks place it
Sources #
- GovernanceEthena Governance — Reserve Fund March 2026 Update ($62M, 1.061% of supply)https://gov.ethenafoundation.com/t/reserve-fund-march-2026-update/775retrieved 2026-04-28
- Ethena Docs — Funding Rate Risk (13-day worst-case, 8.84% negative days)https://docs.ethena.fi/solution-overview/risks/funding-riskretrieved 2026-04-28
- Stablecoin Insider — Ethena USDe Q1 2026 Reporthttps://stablecoininsider.org/ethena-usde-q1-2026-report/retrieved 2026-04-28
- CCN — Oct 2025 USDe Binance depeg event, $2B redemptions in 24hhttps://www.ccn.com/education/crypto/ethena-usde-depeg-binance-crash-explained/retrieved 2026-04-28
Methodology #
Classify whether the protocol is an algorithmic or under-collateralized stablecoin design per curator classification.
See the full factor methodology and distribution across all protocols →