Ethena Labs reveals zero unrealized PNL exposure to Bybit

Ethena Labs has provided an update confirming that its unrealized PNL exposure to the hacked crypto exchange Bybit is now zero.

The update follows an earlier post in which the Ethereum-based synthetic dollar protocol reassured users that its USDe stablecoin had minimal exposure to the incident.

Previously, the Ethena (ENA) team stated that PNL exposure was under $30 million.

“We are aware of the situation currently evolving with Bybit and are continuing to monitor developments.As a reminder: all spot assets backing USDe are held in off exchange custody solutions, including ByBit via Copper Clearloop for this precise reason,” Ethena Labs said in the wake of the $1.4 billion Bybit hack.

According to the latest update, no funds backing USDe’s spot reserves were held on exchanges, including Bybit.

In financial markets, unrealized PNL exposure refers to the profit or loss an entity may incur on open positions. Also known as floating PNL, it represents the potential gain or loss if all open positions were closed immediately.

The Ethena team clarified that less than $30 million in unrealized PNL was tied to Bybit hedge positions. Despite this, USDe remained fully collateralized at the time. The team also noted that the exposure would decrease further in the coming hours.

This amount reportedly dropped to $10 million, before eventually reaching zero.