Proposal: Adopt a Dynamic Cooldown Period for sUSDe Unstaking

EthenaLabs_Research
Thu, 12 Mar 2026 15:33:16 +0000
General

Summary

This proposal suggests adopting a dynamic cooldown model for sUSDe unstaking, shifting away from the static 7 day requirement that has been used since launch. The proposed cooldown periods going forward are: 1 day, 3 day, 5 day and 7 day, depending on the allocation of the USDe backing assets at that time.

The backing assets of USDe have changed considerably since launch, and are generally more liquid today than they were when the portfolio was majority allocated to perpetual futures positions.

Today, perpetual futures make up just 11% of the backing of USDe, with 89% in liquid stablecoins, a large portion of which are immediately available to meet redemptions. As such, when the backing assets are allocated more to liquid stables, a 7 day cooldown is overly restrictive and not an accurate reflection of the immediate liquidity available in the backing.

Background

Looking at the backing asset breakdown at the start of 2025 - 93% of the backing was allocated to perpetual futures positions and a 7 day sUSDe cooldown was an appropriate level that matched the liquidity characteristics of the backing assets at the time.

Today, the backing assets are allocated mostly to liquid stables and lending positions that are outperforming funding rates at their current levels.

A sUSDe unstaking cooldown that adjusts based on the composition of the backing assets of USDe is likely more appropriate and reflective of the liquidity in the backing at that point in time.

Next Steps

The Risk Committee have been briefed of this proposal in advance and have spent significant time deliberating on the suitable triggers and criteria for a change in the cooldown period. The Risk Committee will post their analysis in the replies to this post, and if approved, Ethena will adjust the sUSDe cooldown period to match the current recommendation from the Risk Committee.

The Risk Committee will monitor the cooldown periods and the backing of USDe for any changes that may be warranted going forward.

4 posts - 4 participants