Ethena Labs has issued a special Proof of Reserves update confirming that its USDe stablecoin remains fully overcollateralized by approximately $66 million, following one of the most volatile trading sessions of 2025. The update comes after a sharp but short-lived depeg that rattled the market amid sweeping macroeconomic turmoil.
The incident was triggered by President Donald Trump’s announcement of a 100% tariff on Chinese imports, which sent shockwaves through global financial markets. In the hours that followed, digital assets experienced record liquidations exceeding $19 billion, forcing widespread margin calls and liquidity drains. During this cascade, Ethena’s USDe briefly slipped to $0.992 according to data from CoinMarketCap, before quickly regaining its $1 peg as conditions stabilized.
Ethena attributed the temporary dislocation to secondary market imbalances and cascading futures liquidations, which distorted spot and derivative prices across multiple exchanges. The company emphasized that USDe’s underlying reserves and delta-neutral hedging mechanisms remained intact throughout the event.
In response to heightened community concern, Ethena Labs accelerated its Proof of Reserves verification, enlisting five independent attestors, Chaos Labs, Chainlink, Llama Risk, HT Digital, and Harris & Trotter, to conduct an unscheduled audit within 24 hours. All five confirmed that USDe remains fully collateralized and delta-neutral, reinforcing the stability of its core design.
USDe Proof of Reserves are typically provided on a weekly basis by 3rd party independent attestors including leading firms such as Chaos Labs, Chainlink, Llama Risk and Harris & Trotter.
On request from the community, we have provided a Proof of Reserves outside of the regular… pic.twitter.com/6w0HONPc8Q
— Ethena Labs (@ethena_labs) October 11, 2025
The audit, published on October 11, verified that the protocol’s assets continue to exceed liabilities despite the extreme volatility. Ethena stated that its rapid response and transparency measures demonstrate its “commitment to maintaining trust and stability under all conditions.”
As markets recover from the tariff-induced shock, Ethena’s swift communication and third-party validation have been widely praised across the crypto community, reaffirming confidence in USDe’s resilience and Ethena’s operational integrity even during unprecedented macroeconomic stress.