Ethena Labs has announced its new framework for selecting eligible assets to back its synthetic dollar, USDe. XRP and HYPE have been approved under this framework following their successful meeting of stringent requirements outlined by the company’s independent Risk Committee. The firm’s selection process involved a quantitative metric-based evaluation system focused on liquidity, open interest, and market depth. This decision follows the recent addition of Binance Coin (BNB) to USDe’s backing assets.
Ethena Labs has outlined criteria for its Eligible Asset Framework that ensures stability and smooth execution within the synthetic dollar ecosystem. The framework prioritizes liquidity, open interest, and market depth – metrics meticulously evaluated using a data feed from Coinglass Open API with a cutoff date of August 16. This selection process ensures consistent volume handling, minimizing market disruption.
XRP and HYPE achieved exceptional results by exceeding all minimum benchmark requirements for approval. Both tokens recorded two-week average open interest surpassing the $1 billion threshold, showcasing their ability to facilitate substantial short positions without causing significant market disturbances. Moreover, they consistently maintained daily spot and perpetual trading volumes exceeding $100 million, ensuring sufficient liquidity across exchanges such as Binance, Bybit, and OKX.
The decision is based on both assets’ resilience during volatile market conditions. They demonstrated sustained strength over six months, exceeding $300 million in open interest. This performance was key to their approval under Ethena Labs’ framework.