Reserve Fund Value

Overview

Ethena's reserve fund holds a variety of stablecoin coin assets. The value of assets represents the total current market value of all these holdings. This indicator is dynamically updated to reflect asset values based on market prices.

How can I use it?

The total value of the reserve fund is a key indicator of Ethena’s financial health. A robust fund value suggests a strong financial position, capable of meeting its obligations in case of positive funding rate. Monitoring the fund’s value helps in assessing user exposure to market volatility and potential risks. Fluctuations in value might prompt a reassessment of the Ethena protocol risk profile.

The reserve fund serves as an additional layer of safety for USDe, providing capital to cover periods of negative funding and acting as a last-resort buyer for USDe in the open markets. Given that the solvency of USDe is both transparent and verifiable, if the market price of USDe significantly deviates from its provable asset value, the reserve fund may intervene as a purchaser of USDe in the open market.