Ethena Labs is proud to announce the launch of USDe Proof of Reserves. The solution was created & launched in collaboration with the inaugural Proof of Reserve Attestors: Harris & Trotter, Chaos Labs, LlamaRisk, and Chainlink.

USDe Proof of Reserves, in combination with our monthly custodian attestations, are a part of the protocol’s continued commitment to transparency. Compared to our monthly custodian reports, Proof of Reserves offers more frequency, independent oversight, and a design that’s secure, extensible, and trustless by default.

Anyone is able to see the result of the Proof of Reserves via our “Transparency” page as well as via our partners’ websites:

• Chaos Labs

• LlamaRisk

Harris & Trotter and Chainlink will share dashboards in due course.

USDes Proof of Reserves will answer the following four questions:

1. What is the USD value of the backing assets of USDe?

   1. Answer: (number)

2. Does the notional USD value of the backing assets of USDe exceed or equal the supply of USDe?

   1. Answer: Yes, No.

3. Is the USD value of the backing assets of USDe only the result of digital assets approved by governance & the corresponding derivatives positions?

   1. Answer: Yes, No.

   2. Governance Assets: BTC, ETH, stETH, mETH, WBETH, SOL, USDT, USDC, USDtb, sUSDS.

4. Are the backing assets of USDe delta neutral in USD terms?

   1. Answer: Yes, No.

USDe Proof of Reserves will publish a weekly proof, independently verified by the aforementioned Proof of Reserve Attestors, sourcing information directly from the blockchain, custodians, and exchange partners.

The solution provides further independent verification, from external third parties, that the backing assets of USDe are not custodied with exchanges. The Reserve Fund assets are NOT included in the USD value of the backing assets of USDe.

A cadence of weekly proofs was chosen upon initial launch as we balanced a desire to deliver a solution to market quickly, without creating operational or market headaches given the large number of external data sources required to ingest.

The solution has been created in a manner where we are able to easily extend it to enable additional data points and to increase the cadence proofs are published at pending user feedback.

In addition, the solution was created with the ability to add more Proof of Reserve Attestors, such as accounting firms, custodians, and exchanges, to name a few; without excessive setup or ongoing complexity in the role.

Learn more about how the solution technically works in detail here.

Chaos Labs has integrated the USDe Proof of Reserve solution into their Edge Oracle product and there are countless ways, such as exchanges integrating the USDe’s Proof of Reserves into their price indexes, to enable USDe to attain reduced haircuts as margin collateral.

We are grateful for the support of our users & our partners in delivering a solution that greatly enhances the transparency of the protocol without increasing the surface of risk.