Proposal
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Reya is in progressively being upgraded in line with the ReyaChain announcement made last year. This upgrade will take place in phases, ultimately delivering the first based-rollup DEX that’s millisecond fast, atomically composable with the Ethereum L1 and fully verifiable via zk-proofs
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The design will leverage a lightening fast orderbook, rather than an AMM. Part of the liquidity on the books will be provided through a “Reya Liquidity Pool” (RLP), where assets in the pool will be delegated to selected market makers to create markets on the orderbook. (Please note: RLP is currently referred to as srUSD, but the naming will be changed should this proposal pass)
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This will deliver boosted yield for all RLP holders, whilst also ensuring the markets on Reya remain highly liquid. It is important to note
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USDe has a different risk profile to USDC (hence the yield), but the Ethena team has consistently proven themselves as one of the most transparent and well managed teams in the ecosystem.
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Any potential risk associated with USDe will be significantly reduced once the orderbook goes live. This is because multiple actors (not just those using RLP liquidity) can provide liquidity onto the book, so the liquidity of the exchange won’t all be dependant on assets exposed to any potential risk with USDe.
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In addition, we propose a total of 0.5% of the $REYA supply is allocated towards Reya Stakers and supporting the upgraded pool design from srUSD to RLP. The specifics of how this is distributed are as follows:
| Reward Type | % of supply | Applicable users | Requirements |
|---|---|---|---|
| Yield Increase | 0.2% | Stakers who were unable to unstake during the redemption process. | Must have assets staked at T + 24hrs from unstaking resuming. If assets are unstaked before this, users do not qualify for the reward. |
| Loyalty Boost | 0.1% | Stakers who were unable to unstake during the redemption process. | Must have assets staked at T + 2 weeks from unstaking resuming. If assets are unstaked before this, users do not qualify for the reward. |
| RLP Trading Competition | 0.2% | Anyone holding RLP in their margin account. | Trading competition rules to be shared when competition goes live. |
| Total | 0.5% |
- Importantly, the proposed structure does not use Reya Chain Points, and therefore does not impact allocations users can expect to receive based on RCP holdings.
USDe Risk Considerations
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Following the sdeUSD incident, we have tightened our bar for any yield-bearing stable allocation. The lesson was not “yield is bad”, but that where yield comes from and how it is risk-managed matters: concentrated counterparty exposure and opaque NAV dynamics can turn a strategy problem into a balance-sheet event. Recent reporting on Elixir/deUSD’s collapse after the Stream Finance loss is a reminder of how quickly this can happen when reserves or strategy risk is concentrated.
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USDe has a different risk profile. It is a fully-backed, delta-hedged synthetic dollar whose documentation is explicit about the key risks (funding, liquidation, custody, exchange failure, backing assets) and the mitigations Ethena runs operationally. Importantly for Reya, Ethena publishes ongoing transparency artefacts (Proof of Reserves and custodian attestations) intended to validate reserve existence and custody arrangements, including attestations that backing assets are held with custodians rather than sitting directly on exchanges.
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This vote is therefore not a “reach for yield” but a risk-aware move to a stable yield asset with clearer mechanics, stronger transparency processes, and a risk surface we can monitor continuously.
Next Steps
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This forum post will remain live for discussion until voting starts
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The vote will be based on RCP allocations, with quorum set at 4%
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If passed, the Reya Labs team will prepare everything (USDe partnership, reward distributions and the trading competition) ahead of mf-one redemptions being complete and the partnership going live.