Ethena Labs Ensures USDe Stability After Bybit Hack

• Ethena Labs processed $120M in redemptions quickly after the Bybit hack.
• USDe momentarily dipped but stabilized within minutes.
• Liquidity buffer surged from $30M to $250M to enhance stability.

The recent Bybit hack caused significant market turbulence, but Ethena Labs successfully upheld the stability of its USDe stablecoin. Despite high redemption volumes and market pressure, Ethena Labs swiftly adapted to maintain confidence in USDe.

Rapid Redemption Processing and Price Recovery

Following the Bybit exploit, Ethena Labs faced $120 million in redemptions. The team efficiently processed these within hours, ensuring users could exit without prolonged delays. While USDe experienced a brief price dip, it quickly regained its peg, demonstrating its resilience even under stressful conditions.

Strengthening Liquidity Buffers

To prevent future liquidity issues, Ethena Labs significantly increased its liquidity buffer from $30 million to $250 million. This enhancement provides stronger safeguards against unexpected redemptions and market volatility. Additionally, Bybit-hedged exposure was reduced from $1.2 billion to $800 million, lowering overall risk.

Following the Bybit hack, @ethena_labs detailed how $USDe remained stable despite market stress:

– $120M in redemptions processed within hours

– USDe briefly dipped but recovered within minutes

– $30M in unrealized Bybit profits realized in 90 minutes

– Liquidity buffer… pic.twitter.com/I56ViBnfdH

— Satoshi Club (@esatoshiclub) March 1, 2025

Managing Unrealized Profits

Another key response was the realization of $30 million in previously unrealized profits from Bybit within just 90 minutes. This move helped maintain liquidity and ensured that operational funds remained intact despite the hack’s market impact.

Ethena Labs’ rapid response and strategic adjustments reinforced trust in USDe and highlighted its ability to withstand market shocks.