2 weeks ago
Ethena Labs has integrated Chaos Labs' information authenticity technology, Edge Proof oracles, to fortify the hazard absorption model for its synthetic dollar token USDe.
Edge oracles volition independently verify the full dollar worth of the USDe's reserves and the reserve sum of USDe's proviso and corroborate that reserves are governance-approved and delta-neutral. Chaos Labs shared the announcement exclusively with CoinDesk.
USDe, a synthetic stablecoin, maintains a brushed peg with the U.S. dollar done an automated delta-hedging strategy that shorts bitcoin and ether perpetual futures to offset changes successful the prices of these cryptocurrencies.
The synthetic stablecoin experienced volatility implicit the weekend, falling to 0.982 against tether and 0.988 against USDC, per Kaiko, amid fears that the protocol has multi-million dollar vulnerability to Bybit's ether (ETH) derivatives market. The speech was hacked precocious Friday, with a malicious entity draining implicit $1 cardinal successful ether.
The alleged de-peg, however, was short-lived arsenic Ethena assured investors that each assets backing USDe were held off-exchange and its reserve money was much than capable to compensate for immoderate losses from the Bybit exploit.
The integration with Chaos Labs adds different furniture of credibility to USDe's reserves, ensuring they enactment unafraid and transparent.
The Edge Proof of Reserves (PoR) oracles volition perpetually show the reserve levels of tokens and cheque the collateral backing them. This is done by smoothly integrating off-chain information from custodians and centralized exchanges into the on-chain environment, ensuring scalable and robust enactment for institutional-grade applications.
The integration besides provides automated alerts to notify users of immoderate information anomalies oregon if reserve levels autumn beneath the required thresholds. Verified information is publically displayed connected Ethena’s transparency leafage and attestor interfaces, keeping stakeholders informed.
"This integration ensures continuous, autarkic verification of reserves, fostering greater transparency and information for each users. By leveraging real-time, tamper-resistant data, Ethena reinforces its committedness to a robust and reliable synthetic dollar," the announcement said.
Chaos Labs' Edge oracle leverages zero-knowledge proofs to guarantee information and privateness portion providing real-time and transparent information verification, including for reserves held off-chain oregon crossed antithetic blockchains.
These oracles person secured implicit $70 cardinal successful volume, delivering hazard absorption to decentralized concern (DeFi) giants similar AAVE, Jupiter, GMX, and Tether.
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