Ethena Labs has officially recognized XRP and HYPE tokens as eligible backing assets for its synthetic dollar, USDe. This decision is part of the company's new Eligible Asset Framework.
Asset Approval Process
The selection process relied on a quantitative system developed by Ethena’s independent Risk Committee. The evaluation was based on liquidity, open interest, and market depth, using data sourced from centralized exchanges and the Coinglass API with a cut-off date of August 16.
Achievements of XRP and HYPE
According to the assessment, both XRP and HYPE exceeded all minimum requirements for approval. Each token recorded a two-week average open interest surpassing the $1 billion threshold, deemed essential for maintaining large short positions without causing significant market disruption. Both tokens also consistently posted daily trading volumes above $100 million.
Tokens That Did Not Pass
While XRP and HYPE passed all required benchmarks, SUI and ADA were not approved due to insufficient liquidity and open interest, failing to meet the outlined thresholds.
Thus, XRP and HYPE have emerged as significant assets for Ethena Labs, demonstrating market stability and attractiveness, while SUI and ADA remain outside the approved asset category.
