Ethena Labs has expanded the list of eligible assets to support its synthetic dollar, USDe, by approving BNB, XRP, and Hyperliquid’s HYPE.

The move is part of a new Eligible Asset Framework that sets clear benchmarks for which tokens can be used in the stablecoin’s collateral system.

Liquidity concerns

According to the Ethena Risk Committee, the framework addresses liquidity concerns in spot and perpetual futures markets. The committee noted that the considered assets must clear a minimum threshold before they can be deemed suitable for the hedging strategy that underpins USDe.

Under the policy, an asset must show more than $1 billion in open interest over a two-week period, at least $100 million in combined daily spot and perpetual trading volume, and sufficient market depth on both sides.

Specifically, the order books must demonstrate about $500,000 in spot depth and $10 million in perpetual depth, averaged over two weeks.

The committee said these high criteria aim to reduce the risk of slippage and execution delays that could occur during portfolio rebalancing.

Although approval signals that a token meets the framework’s requirements, the committee clarified that onboarding may not happen immediately. Notably, BNB is the first eligible asset backing USDe under this new framework.

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Author: Oluwapelumi Adejumo