Risk assessment firm LlamaRisk noted in its October 12 assessment that 51.2% of the reserve assets backing synthetic dollar $USDe had been allocated to DeFi and institutional lending. The assessment also cautioned that this percentage does not represent actual withdrawals by borrowers, nor does it mean the funds are cash that can be redeemed immediately. Exiting at face value is not straightforward: only eligible counterparties can redeem directly with Ethena; other holders have to rely on the secondary market. #DeFi #Stablecoins

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(Source: X)