‘Our collateral resides off-exchange’ – Ethena downplays $8.8M Binance exposure

Ethena, the protocol behind the synthetic, yield-generating stablecoin USDe, has downplayed exposure to the Binance hack. The team clarified that all their USDe backing resides offchain with its custodians, not on centralized exchanges. In fact, for the Binance scenario, the team claimed only $8.8 million in unrealized PnL (profit and loss) exposure to the platform. The total unrealized PNL exposure to Binance is ~$8.8M, far below the excess reserve fund of >$60m. In a separate update following the FUD tied to the Binance exploit, Ethena added that independent attestors, Chainlink and Llama Risk, have verified its overcollateralized backing for USDe.