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Risks and Concerns Behind Ethena's Cross-Chain Expansion

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Synthetic stablecoin issuer Ethena is quietly adjusting its strategy. According to the latest data, the company recently moved $1.5 billion worth of BUIDL assets (BlackRock’s tokenized money market fund) from Ethereum to three other chains: Aptos, Avalanche, and Polygon, allocating $500 million to each chain.

The official reason sounds legitimate: The move is intended to make USDtb more compliant with stablecoin industry standards. The driving force behind this is Anchorage Digital Bank taking over the minting and redemption authority for USDtb. Sounds more compliant, right?

But here’s the issue—there is a serious liquidity mismatch. Currently, 100% of USDtb’s supply is still locked on Ethereum, while only 18% of the BUIDL reserves are on Ethereum. What does this mean? If the market comes under pressure, users trying to quickly redeem USDtb on non-Ethereum chains could be left hanging.

On-chain data comparison:

  • Ethereum mainnet: 100% of USDtb liquidity vs 18% of BUIDL reserves
  • Other chains: received reserves, but not a matching supply

This kind of asymmetric deployment could spark a depegging risk during a bear market or liquidity crisis. Ethena is betting on a calm market, but once volatility hits, cross-chain arbitrageurs and panic redeemers will show no mercy.

ENA8.48%
ETH1.98%
APT-0.74%
AVAX3.89%
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