BA Labs confirms our intent to seek re-election to the Ethena Risk Committee. In our current term on the risk committee, we have contributed via our deep experience in stablecoin protocol operations, crypto-native risk management, and mechanism design.
To give some specific examples of our work thus far:
- Asset evaluation: Reviewed suitability of inclusion of SOL as a backing asset for USDe (see forum thread here)
- RWA evaluation: Reviewed suitability of RWA and cash equivalent asset inclusion into the reserve fund, as well as suitability of USDtb as a backing asset for USDe
- Reserve fund sizing: Contributed to committee discussion on reserve fund sizing, and currently working on framework for determining appropriate capitalization levels based on the composition of USDe backing assets and other relevant factors
- sENA staking and revenue allocation: Reviewed and proposed pre-conditions for activating sENA fee switch, including capital adequacy and growth metrics
If approved by ENA governance to continue our work on the risk committee, we plan to focus on Ethena’s capital and reserve framework and deepening risk transparency to give users and other stakeholders greater confidence in the protocols’ resilience. We also look forward to contributing to mechanism design challenges and growth initiatives alongside other committee members and the rest of the Ethena community.
Going forward monetsupply will continue to serve as BA Labs’ primary representative to the risk committee, supported by the rest of our team of analysts, data scientists, and devs. We work with a range of other protocols across the defi space, most notably Sky (fka MakerDAO) and Spark (a subdao affiliated with Sky), and we will continue to conduct all client engagements according to the highest ethical standards.