Ethena Labs has integrated the authenticity technology of Chaos Labs data, edge proof oracles, to strengthen the risk management framework for your synthetic dollar token.
Edge Oracles will independently verify the total value in dollars of the USDE reserves and the reservation coverage of the USDE supply and will confirm that the reserves are approved by governance and delta-neutral. Chaos Labs shared the announcement exclusively with Coendesk.
USDE, a synthetic stable, maintains a soft plug with the US dollar through an automated delta coverage strategy that cuts the perpetual future of Bitcoin and Ether to compensate for the changes in the prices of these cryptocurrencies.
The synthetic stable experienced volatility over the weekend, falling to 0.982 against Tether and 0.988 against the USDC, according to Kaiko, in the midst that the protocol has multimillionaire exposure to the Ether derivatives market (ETH) of Bybit. The exchange was pirated on Friday night, with a malicious entity that drained more than $ 1 billion in ether.
However, the call De-PEG was shortly since Ethena assured investors that all the assets that supported the USDE were out of exchange and their reserve fund was more than enough to compensate for any loss of Bybit’s exploit.
The integration with Chaos Labs adds another layer of credibility to USDE reserves, ensuring that they remain safe and transparent.
The edge test of the reservation oracles (by) will constantly monitor the tokens reserve levels and verify the guarantee that supports them. This is done by gently integrating data outside the chain of custodians and centralized exchanges in the environment in the chain, ensuring scalable and robust support for institutional degree applications.
Integration also provides automated alerts to notify users of any data anomaly or if the reserve levels fall below the required thresholds. The verified data is shown publicly on the transparency page of Ethena and the interfaces of the attestors, keeping the interested parties informed.
“This integration guarantees a continuous and independent verification of the reserves, promoting greater transparency and safety for all users. By taking advantage of the data in real time and resistant to manipulation, Ethena reinforces its commitment to a robust and reliable synthetic dollar,” The announcement said.
The Edge Oracle de Chaos Labs takes advantage of zero knowledge tests to guarantee safety and privacy while providing data verification in real and transparent time, including reserves maintained outside the chain or in different blockchains.
These oracles have obtained more than $ 70 billion in volume, providing risk management to decentralized finance giants (Defi) such as Aave, Jupiter, GMX and Tether.
