Ethena's USDe Reserve Model Undergoes Significant Changes Amid Ongoing Bearish Trend

Ethena Labs has made significant changes to the reserve model of its USDe stablecoin, aiming to enhance stability and reduce volatility. As part of this update, exposure to crypto perpetual futures has been reduced to just 11% of total backing, while new collateral types have been added, including real-world assets, equity and commodity basis trades, and prime loans to trading firms.

These changes are expected to impact Ethena's price action in the short term. Analysts predict a continued bearish trend for ENA, with technical indicators suggesting that the token is oversold but facing resistance at the Ichimoku Kijun level of $0.0986.

The updated reserve model also includes plans for a dynamic unstaking cooldown period to better match current liquidity. This move is seen as an effort to improve risk management and reduce volatility in the USDe stablecoin.