Ethena gives trading team borrower approval power for USDe backing
BROBROK News · Based on reporting by CryptoSlate ·
Ethena’s October 29 lending framework lets its trading team approve certain borrowers of assets backing USDe without a separate Risk Committee vote. The committee still oversees the process, but the public text does not set a numeric lending cap or confirm any borrower has already used the new route.
Key points
- The trading team can screen eligible borrowers under the published route.
- The Risk Committee keeps oversight and can call in cases based on stated criteria.
- The framework requires recourse, sanctions checks, segregated custody and daily collateral reporting.
- Allowed collateral includes BTC and ETH, while USDe, sUSDe, ENA and USDtb are excluded.
- No public aggregate cap or per-borrower concentration limit is stated in the text.
Why it matters
This changes how assets backing USDe can be deployed and how credit risk is delegated within Ethena’s governance structure. The lack of a published ceiling also makes it harder for market participants to gauge total exposure from the framework alone.
Original headline: “Ethena’s trading team can approve borrowers of assets backing USDe under new rules”
Read the original on CryptoSlate
Summary and analysis written by BROBROK News from the original report. Read the full story on the source website. Not investment advice.