TechFlow news, January 6 — According to Protos, a recent proposal on the Aave governance forum to peg Ethena's USDe to USDT at a 1:1 ratio has raised concerns within the community about potential conflicts of interest. The proposal suggests replacing the current Chainlink USDe/USD oracle with a USDT-based price feed to prevent bad debt arising from liquidations.
Notably, both authors of the proposal, ChaosLabs and LlamaRisk, have previously collaborated with Ethena. MakerDAO community member ImperiumPaper expressed concern, likening the situation to "a real estate agent representing both the buyer and the seller."
Critics point out that USDT is fully backed by off-chain assets, whereas USDe relies on a delta-neutral strategy involving long and short ETH positions, exposing it to risks from negative funding rates when market sentiment shifts. Meanwhile, Ethena founder Guy Young denies any conflict of interest, emphasizing that the company has established a risk committee to ensure external oversight of product management.
