Ethena Labs has integrated the authenticity technology of Chaos Labs data, Edge Proof Oracles, to strengthen the risk management framework for its synthetic token in USDE dollars.
Edge Oracles will independently check the total value in dollars of the USDE reserves and the reserve coverage of the USDE offer and confirm that the reserves are approved by governance and neutral. Chaos Labs shared the announcement exclusively with Coindesk.
The USDE, a synthetic stablecoin, maintains a gentle ankle with the US dollar thanks to an automated Delta cash register strategy which short-circuits bitcoin and perpetual ether to compensate for changes in the prices of these cryptocurrencies.
The synthetic stablecoin experienced volatility over the weekend, falling to 0.982 against Tether and 0.988 against the USDC, by Kaiko, in the midst of fears that the protocol has a several million dollars exhibition at the Ether derivatives market ( Eth) by Bybit. The exchange was hacked on Friday evening, with a malicious entity draining more than a billion dollars in ether.
The so-called De-Peg, however, was short-lived, because Ethena assured investors that all the assets supporting the USDE were maintained outside the exchange and that his reserve fund was more than sufficient to compensate any loss of the exploit of statements.
Integration with Chaos Labs adds another layer of credibility to the USDE reserves, ensuring that they remain safe and transparent.
The proof of edge of the reserve oracles (POR) will constantly monitor the reserve levels of token and will check the guarantees supporting them. This is done by gently incorporating the out chain data from the goalkeepers and centralized exchanges in the environment on a chain, ensuring an evolutionary and robust support for institutional quality applications.
Integration also provides automated alerts to inform users of data anomalies or if reserve levels fall below the required thresholds. The data verified is publicly displayed on Ethena’s transparency page and certificate interfaces, holding the informed stakeholders.
“This integration guarantees continuous and independent verification of reserves, promoting greater transparency and security for all users. By taking advantage of real and resistant data, Ethena strengthens its commitment to a robust and reliable synthetic dollar”, said the ad.
Oracle Edge de Chaos Labs uses zero knowledge evidence to guarantee security and confidentiality while providing real -time and transparent data verification, including for reserves held out of the chain or on different blockchains.
These oracles have obtained more than $ 70 billion in volume, offering risk management to decentralized finance giants like Aave, Jupiter, GMX and Tether.
