Blockworks Advisory analysis for the Ethena Risk Committee. Figures are monitoring metrics and illustrative scenarios for committee review.

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Stress Testing

Hypothetical third party loop and redemption scenarios using live tier liquidity.

Live coverage and Reserve Fund: Risk Metrics. Withdrawable by venue: Backing Allocation. Tier balances below are shock inputs.

Loop Controls

Outside actor borrowing against USDe or sUSDe on the selected venue. Ethena lending balances stay fixed.

Modeled USDe or sUSDe price decline at which the loop reaches liquidation. Liquidations increase sell volume on the selected venue only.

Loop Results

Outcome

19.08% price decline to loop liquidation

Hypothetical USDe or sUSDe decline at which this modeled third party loop reaches liquidation.

Amount looped

$164.40M

Modeled USDe posted across 5 iterations from $50.00M seed

Leverage

3.29×

New Aave utilization 61.44%

Leverage multiplier

3.29×

Modeled loop USDe demand

$164.40M

New Aave utilization

61.44%

Hypothetical model price decline to loop liquidation

19.08%

Third Party USDe Demand per Loop Iteration

Each bar shows new USDe posted as collateral in one recycle step of the modeled loop.