Ethena Labs has just announced the Qualified Asset Framework to evaluate and expand the collateral assets for the perpetual USDe contract.
This standards framework requires assets to meet strict liquidity and market depth criteria, aimed at enhancing safety and liquidity for USDe derivative contracts.
MAIN CONTENT
The Qualified Asset Framework is established by the Ethena Labs Risk Committee.
BNB has been approved as the first asset, with XRP and HYPE being potential candidates.
The criteria include trading volume, open interest, and market depth that are very stringent.
What is the Eligible Asset Framework?
The Qualified Asset Framework developed by the Ethena Risk Committee is a set of standards for evaluating and expanding the portfolio of assets backing the perpetual USDe contract.
This framework sets strict requirements for liquidity, trading volume, and market depth to ensure that the collateral assets used must have high stability and liquidity, minimizing risks for market participants.
Implementing the standards framework helps Ethena Labs maintain safety and optimize the operational performance of derivative contracts.
Which assets have been approved and what are the potential candidates?
BNB has been approved by Ethena Labs as the first asset in the new list, allowing it to be used as collateral for the perpetual USDe contract.
XRP and HYPE have also fully met the criteria and are currently under review to become the next potential listed assets.
This shows that the selection process is based on transparent standards and a thorough evaluation process aimed at safely expanding the asset-backed ecosystem.
What are the specific criteria of the standard framework?
The framework sets requirements such as: the average open interest over 14 days must exceed 1 billion USD, the trading volume in 24 hours for both spot and perpetual contracts must be over 100 million USD each, and the spot market depth must reach a minimum of 500,000 USD.
These standards ensure that assets have sufficient liquidity and depth to reduce price volatility and liquidity risk for USDe contracts.
The risk committee is committed to regularly updating the list of standard assets based on detailed risk assessments to timely respond to market fluctuations.
Establishing the Qualified Asset Framework contributes to enhancing the safety and stability of the USDe contract while facilitating the sustainable expansion of the asset-backed portfolio.
CEO of Ethena Labs, 22/08/2024
Frequently Asked Questions
What role does the Qualified Asset Framework play in the financial market?
The framework ensures that the collateral assets have liquidity and stability, minimizing risks for USDe derivative contracts.
What are the liquidity criteria for asset approval?
Assets must have a spot trading volume and perpetual contract volume of over 100 million USD in 24 hours and a minimum market depth of 500,000 USD.
Which assets have currently been approved under this framework?
BNB has been approved as the first asset, and XRP and HYPE are potential candidates awaiting approval.
How will the Ethena Labs Risk Committee update the standards framework?
The committee will regularly evaluate and update the list of standard assets based on risk analysis and market fluctuations.
Does the framework help reduce the price volatility of the USDe contract?
Yes, by requiring collateral assets to have high liquidity and market depth, helping to reduce price volatility and liquidity risk.
Source: https://tintucbitcoin.com/bnb-dau-tien-dat-chuan-tai-san-dam-bao/
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