TechFlow news, Julio Moreno, Head of Research at CryptoQuant, stated that Ethena's current reserve fund ($32.7 million) is sufficient to withstand a period of negative funding rates, provided the market cap of USDe does not exceed $3 billion (current market cap is $2.4 billion).
To safely handle extreme negative funding rate events when the market cap reaches $4 billion, $5 billion, $8 billion, and $10 billion, the reserve fund would need to increase to approximately $40 million, $50 million, $80 million, and $100 million respectively.
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