LlamaRisk Intent for Re-election to the Ethena Risk Committee
To the Ethena stakeholders and the broader community, we at LlamaRisk extend our sincere gratitude for the confidence and trust you have placed in us during our current term on the Risk Committee. It has been a privilege to contribute to the security and stability of Ethena. As our term approaches its conclusion, we are excited to announce our intention to stand for re-election, and we are eager to continue our dedicated work in safeguarding the Ethena ecosystem.
Our tenure on the Risk Committee has been defined by our commitment to proactive risk identification, rigorous analysis, and transparent communication. We have consistently strived to provide the Ethena community with the insights and tools necessary to navigate the complexities of the DeFi landscape. We believe our contributions have been instrumental in reinforcing the resilience of the USDe peg and the overall health of the protocol.
Key Contributions During Our Term
Throughout our time on the Risk Committee, we have been at the forefront of several key initiatives, collaborating closely with fellow committee members and Ethena Labs.
Reserve Fund Management and Capital Efficiency
We have taken a leading role in the Reserve Fund Subcommittee, delivering consistent and data-driven monthly recommendations. Our analysis, including the development and refinement of Reserve Fund Drawdown Methodology V2, has guided the appropriate size of the Reserve Fund to ensure it remains a robust backstop for the protocol, while also checking the feasibility of moving part of the Reserve Fund’s excess capital into USDe backing.
- Proposal: Allocating a portion of excess Reserve Fund assets to USDe backing
- Reserve Fund Subcommittee June 2025 Update
- Reserve Fund Subcommittee July 2025 Update
We strive to continuously improve our risk frameworks through deep collaboration. We are currently closely working with Ethena Labs to refine the reserve fund methodology, incorporating Ethena’s operational trading data to create more accurate and realistic models. In addition, we are also working hand-in-hand with Blockworks Research to align on the risk-related rationale of the Reserve Fund capitalization.
Proactive Risk Analysis & Venue Integration
We have demonstrated our ability to respond swiftly and comprehensively to Ethena’s needs. Our “Bybit Incident Post-Mortem” provided the community with a detailed analysis of the event and its implications for Ethena. More recently, we provided a comprehensive Coinbase (INTX) Integration Review, assessing the legal, regulatory, and technical aspects of onboarding this new hedging venue.
Protocol Growth and Security
We have actively supported the secure growth of the protocol by providing diligent feedback on new asset integrations and collaborating on core mechanism designs (e.g., providing impartial feedback on the onboarding of aUSDC, aUSDT, and aUSDtb. We are also collaborating on the setup and parametrization of the ENA fee switch, a critical development for the protocol’s value accrual.
Legal and Regulatory Diligence
We were a foundational member and active participant of the Fee Switch Legal Working Group, where we framed and continue to iterate the analysis of whether, and under what configurations, value flowing to ENA could trigger securities, collective investment scheme, e-money, or other licensing consequences in key jurisdictions. In parallel, and in close collaboration with Ethena Labs, we drafted and operationalised ENA communication guidelines for the fee switch.
We conducted a targeted legal review of the deployment of USDtb-backing assets into Aave. We further performed cross-jurisdictional regulatory analyses and screenings for licensing/authorisation requirements in different jurisdictions.
Given the sensitivity of much of this work, not all deliverables have been published to the forum. We have instead maintained an active, documented dialogue with Ethena Labs and the Ethena Foundation to ensure outputs are scoped to their operational needs while preserving confidentiality and privilege.
Our Vision for the Future
If re-elected, LlamaRisk is committed to building upon the foundation we have helped to establish. Our priorities for the upcoming term are centered on continuous improvement and proactive risk management:
Reserve Fund capitalization: We will continue to refine the Reserve Fund capitalization models and provide regular updates on the Reserve Fund recommendations and needs.
Legal & Regulatory Consultation: We will provide ongoing legal and regulatory analysis to help Ethena navigate the evolving compliance landscape.
Continuous Monitoring & Tooling: A key focus will be the enhancement and maintenance of the Ethena Risk Portal, incorporating new data points and improving simulation capabilities.
Strengthening Collaborative Governance: We will continue to work in close partnership with our fellow Risk Committee members, the Ethena Labs team, and the wider community to ensure a robust and decentralized approach to risk management.
Conclusion
We are immensely proud of the work we have accomplished during our time on the Ethena Risk Committee. We are confident that our expertise, dedication, and collaborative spirit make us ideal candidates to continue serving the Ethena community. We look forward to continuing our partnership with the Ethena team, stakeholders, and our fellow Risk Committee members!