Ethena Framework Sets Trading Team Route for Lending Counterparties

Kairos Research posted a lending framework to Ethena’s governance forum Oct. 29 that would let the protocol’s trading team onboard qualifying institutional counterparties without a separate Risk Committee vote, while preserving committee oversight. The route depends on checks for recourse, jurisdiction and standing, sanctions screening, custody and daily collateral reporting. A counterparty must use a single signing entity with full recourse, or provide a parent guarantee if the parent backs the borrowing. Collateral must sit in a segregated tri-party account with an approved custodian, and Ethena must be able to verify reports each day.

Source: TokenPost