Internal Services

At a high level, the "Hedging System" is composed of broadly five services:

  1. Portfolio Management System

  2. Market Data Parser Service

  3. Reference Data Service

  4. Reconciliation Service

  5. Persistor Service


Portfolio Management System

The "Portfolio Management System" manages a number of key functions including:

  • Calculating and publishing indicative prices if users were to mint & redeem USDe.

  • Calculating and publishing prices for users' mint & redeem USDe requests.

  • Calculating portfolio exposure in real time & requesting operations as a result.

  • Orchestrating the delegation/undelegate between "Off-Exchange Settlement" providers and CeFi exchanges as well as coordinating the movement of collateral between "Off-Exchange Settlement" providers & Minting + Staking smart contracts.

  • Routing and managing the execution of orders to manage risk.

  • Altering in the event of system degradation or inconsistency present in the system.

Market Data Parser Service

The "Market Data Parser Service" connects & ingests market data updates from CeFi Exchanges, "Off-Exchange Settlement" providers, as well as Pyth and Redstone. This information includes order book updates, public trades, and private orders, positions & trade information.

The application is designed, built, and deployed in a manner wherein it is resilient and functional even in high-volatility environments.

Reference Data Service

The "Reference Data Service" normalizes & validates the integrity of all ingested data.

Reconciliation Service

The "Reconciliation Service" periodically verifies information throughout the system is consistent with that from external sources. This includes, but not is not limited to position & market data information. This service is one of many layers throughout the system to validate & ensure the integrity of the operation of the system.

Persistor Service

The "Persistor Service" publishes internal events to data stores, such as databases. This enables recovery in a wide range of instances without losing data & enables Ethena to rapidly heal and continue operations without interruption or user detriment.

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