Ethena's USDe (CRYPTO:USDE), a synthetic US dollar protocol on Ethereum (CRYPTO:ETH), has garnered attention with a market cap surpassing $2 billion, backed by a unique delta hedging strategy instead of traditional collateral.

Julio Moreno from CryptoQuant highlights the significance of monitoring two key metrics, the reserve fund size relative to USDe's market cap and the keep rate, to assess the protocol's stability amidst funding risks.

Maintaining a high keep rate above 20% and adjusting the reserve fund size accordingly is crucial for USDe to avoid the pitfalls that led to the collapse of Terra’s UST stablecoin.

Investors must remain vigilant and proactive in tracking these metrics to gauge the sustainability and resilience of Ethena's USDe as a stablecoin in the volatile crypto market.