🤝 Ethena Dynamic Cooldown: Three Months In, One Exploit Later
Blockworks Advisory reviews 89 days of live performance of Ethena's dynamic-cooldown framework for sUSDe, which ties the unstaking cooldown period to real-time liquidity coverage of USDe's backing. The framework was stress-tested by the late-April rsETH exploit, which triggered six consecutive days of redemptions totaling $1.97 billion; Tier-1 liquid backing absorbed a 51.9% drawdown but coverage never dropped below 5.47x, so the one-day cooldown held throughout. Ethena has since added $500 million of tokenized RWA backing, and the piece argues combined Tier-1 and Tier-2 coverage — not Tier 1 alone — is now the right metric for judging redemption-buffer adequacy.
🔗 Read more