The October 29 framework delegates qualifying borrower screening while retaining committee call-in powers and oversight of lending limits.

Ethena’s October 29 institutional-lending framework sets out a route for its trading team to onboard qualifying borrowers of assets backing USDe without an individual Risk Committee vote.

The posted rules describe a change in approval authority over lending that helps back Ethena’s synthetic dollar. For USDe holders, published eligibility rules and exposure disclosures offer a way to assess that credit risk. The committee retains oversight, with borrower documents sent to it privately.

The framework posted by Kairos Research describes the delegated route; it identifies no newly funded borrower using it.

Eligibility combines bilateral lending with full recourse to the borrower or a parent guarantee, jurisdiction and standing checks, sanctions screening, segregated tri-party custody and verifiable daily collateral reports. The custody arrangement puts collateral with a third party.

Borrower documents go privately to the committee at least three business days before first funding. A member calling a borrower in must identify a failed criterion, with a decision within five business days. The committee therefore retains a criterion-based call-in power, while the text leaves funding during a pending objection unspecified. Cases outside the framework still require committee review.

The lending team sets loan-to-value rate cards, shared monthly with the committee alongside book reporting. Loan-to-value measures the amount lent relative to collateral value. A missed margin call, default or changed standing stops new lending to that counterparty and triggers escalation within 48 hours.

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