Ethena Proposes Replacing 7-Day sUSDe Unstaking Period With Dynamic Cooldown
Ethena Labs has proposed a governance change to replace the fixed 7-day unstaking cooldown for sUSDe with a dynamic period ranging from 1 to 7 days, based on USDe's reserve composition. This move aims to adapt to current market conditions as Ethena's deployed capital has sharply declined by over 85% from its peak amid balanced bullish and bearish sentiment in the derivatives market. The proposal reflects efforts to enhance protocol flexibility and resilience in a challenging DeFi environment.
Ethena Labs has put forward a governance proposal to replace the protocol's static 7-day sUSDe unstaking cooldown with a dynamic model that adjusts based on the composition of USDe's backing assets.The proposed framework would introduce cooldown periods of 1, 3, 5, or 7 days, depending on how USDe's reserves are allocated at any given time.The timing is notable. Ethena's deployed capital has fallen to just $791 million, a decline of over 85% from its all-time high. The contraction reflects broader risk-off market conditions, with bulls and bears now nearly evenly matched in the derivatives market, an unusual condition that has made the basis trade far less profitable.To continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io
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