# Reserve Fund

**URL:** https://gov.ethenafoundation.com/c/reserve-fund/7.md

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## [About the Reserve Fund category](https://gov.ethenafoundation.com/t/about-the-reserve-fund-category/13)

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**Author:** [@governanceforum](https://gov.ethenafoundation.com/u/governanceforum)\
**Replies:** 0\
**Last updated:** [June 19, 2024, 2:54pm UTC](https://gov.ethenafoundation.com/t/about-the-reserve-fund-category/13 "2024-06-19T14:54:15Z")

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The reserve fund acts as an additional margin of safety behind USDe to provide a source of capital to pay for periods of negative funding, as well as a bidder of last resort for USDe in open markets. Composition of Res…

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## [Proposal: Allocating a portion of excess Reserve Fund assets to USDe backing](https://gov.ethenafoundation.com/t/proposal-allocating-a-portion-of-excess-reserve-fund-assets-to-usde-backing/555)

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**Author:** [@EthenaLabs\_Research](https://gov.ethenafoundation.com/u/EthenaLabs_Research)\
**Replies:** 1\
**Last updated:** [April 29, 2025, 3:40pm UTC](https://gov.ethenafoundation.com/t/proposal-allocating-a-portion-of-excess-reserve-fund-assets-to-usde-backing/555 "2025-04-29T15:40:44Z")

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Summary This proposal suggests reducing the Reserve Fund size by $5m to mirror the reduction in USDe supply from 6bn to 4.8bn in the last few months. Furthermore, it is prudent to revisit overall sizing requirements for …