Ethena's June 2025 Governance Update

General
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Ethena’s June 2025 Governance Update

BA Labs is presenting the governance update for June on behalf of the Ethena Risk Committee, covering protocol metrics, proposals, and other key news from the past month.

Key Takeaways

  • Protocol Metrics Holding Steady: USDe supply grew by as much as $500 million mid month, before dropping back to end the month roughly flat.
  • Integration Progress: Ethena continued to deepen integration with key partners, including Aave and Securitize. The past month also brought new and expanded partnerships with the Telegram ecosystem and defi protocols that will help drive USDe usage and demand. The ENA native token was listed on Coinbase, giving increased visibility and accessibility for the Ethena ecosystem.
  • Capitalization Stays Steady: The Reserve Fund was steady at $61.1M. Due to the growth of the USDe circulating supply, this represents 1.25% excess collateralization, slightly down from last month but still within a healthy range.

Protocol Metrics

  • Protocol Metrics

    • Total USDe Supply: $5.3B
    • USDe Staked: 52%
    • Protocol Backing Ratio: 101.25%
    • Reserve Fund: $61.1M
    • Current APY: 3.51% (4.1% 30 day avg)

  • Crypto prices ended the month flat, and traded in a tight range throughout the month with the exception of a short-lived crash during the recent Middle East conflict.

  • Funding conditions have moderated, with funding rates averaging in the low single digits over the past weeks

  • USDe backing composition was stable over the month, holding slightly less than 50% in liquid stables/cash equivalent assets, and the remainder in basis trading positions.

  • USDe and related assets/PTs are used to collateralize $2.18 billion of stablecoin debt, primarily on Aave. This represents roughly 39% of the current USDe supply. Supply funded by leveraged positions is highly capital efficient, but may be more sensitive to changes in relative yields.

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  • Fee Switch Metrics:

    • USDe circulating supply: $5.3B (threshold: >$6bn)
    • Cumulative protocol revenue: $374M (threshold: >$250mm)
    • CEX adoption: USDe CEX adoption: 3 (threshold: 4 of the top 5 CEX by derivatives volume)
    • sUSDe APY spread vs benchmark: 0% (threshold: 5.0-7.5%)

  • Upcoming Pendle Maturities (PT circulating supply)

    • sUSDe 25 June 2025 (BNB) → $14M
    • sUSDe 30 July 2025 → $1.92B
    • USDe 30 July 2025 → $225M
    • eUSDe 13 Aug 2025 → $460M
    • sUSDe 24 Sep 2025 → $58M
    • USDe 24 Sep 2025 → $4M

  • Debt collateralized against USDe, sUSDe, and PTs

    • Aave → $2.12 billion
      • PT-sUSDe-July → $1.1 billion
      • PT-USDe-July → $159 million
      • PT-eUSDe-Aug → $295 million
      • USDe → $415 million
      • sUSDe → $146 million
      • eUSDe → $40,000
    • Morpho → $68 million
      • DAI vaults → $43 million
      • USDC vaults → $20 million
      • USDT vaults → $5 million

Protocol Update

  • TBD

Governance Activity

  • New proposals: None for the past month.
  • Previous proposals implementation
    • Proposal: Ethena Supplying USDtb to the Aave market
      • Previously reviewed by the risk committee in May
      • Ethena has now supplied 100 million USDtb to the Aave market
    • Proposal: Onboarding Aave aUSDC and aUSDT as backing assets
      • Previously reviewed by the risk committee in May
      • Ethena has now supplied 10 million USDC and 50 million USDT to the Aave market
      • Total exposure to the Aave Core market is now at $160 million across all 3 supplied stablecoins
  • Working group activity
    • Reserve Fund working group
      • LlamaRisk and Blockworks Advisory analysed potential reserve fund needs over the past month.
      • LlamaRisk recommended a minimum reserve fund of $35.8 million.
      • Blockworks Advisory recommended a minimum reserve fund of $41.8 million.
      • Consensus forward projected reserve fund needs are $44.8 million, which are covered 136% by the current reserve fund balance of $61.1 million. Given the maximum observed 3-day increase in reserve needs over the sample period of 33%, a conservative target of roughly $57 million of reserves is still well covered by the existing reserves (107% coverage). This analysis suggests the protocol has ample capital to meet potential risk exposures.

Ecosystem Activity

  • Aave sees strong TVL growth of Ethena assets, including PT-sUSDe and USDtb
    • The supply cap for PT-sUSDe-31July2025 was raised by 300 million to 1.6 billion.
    • USDtb deposits have reached the $100 million supply cap, driven by deployment of Ethena backing assets per the recently approved governance proposal to onboard Aave USDtb. The supply cap is expected to be increased in the near future.
    • Ethena has also deployed $60 million of USDC and USDT to Aave as of 24 June.
  • USDe is integrated as a savings product in the Telegram Wallet mini-app
    • USDe is the default savings option in Telegram Wallet, with users able to earn a boosted yield of up to 18%.
    • tsUSDe is also available as a core savings option on other self-custodial TON wallets.
  • Ethena and Securitize offer onchain liquidity for BUIDL via USDtb
    • Onboarded users can exchange between BUIDL and USDtb onchain 24/7, providing additional liquidity options for BUIDL and access to a range of USDtb defi integrations.
  • Yield bearing stablecoin InfiniFi partners with Ethena
    • sUSDe and related assets (including Pendle PTs) will serve as a core allocation for iUSD.
    • sENA stakers will get boosted points benefits from the InfiniFi rewards program.
    • Project is the latest of many defi protocols to partner with Ethena, boosting utility for USDe and sENA.
  • Ecosystem project Ethereal DEX launched their public testnet: testnet.ethereal.trade
  • ENA was listed on Coinbase as of June 4.
  • USDe and sUSDe holders qualified for Spark’s SPK airdrop (details).
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