USDe Peg Stable After Brief Glitch

[cryptohog]

Ethena Labs’ USDe stablecoin briefly lost its $1 peg following the October 10 crypto crash, dropping to $0.65 on Binance. Founder Guy Young clarified that the depeg was caused by an internal oracle issue at the exchange, not a failure of USDe’s synthetic collateral or redemption mechanisms.

During the liquidation, around $2 billion was redeemed across major DeFi platforms in 24 hours, and USDe now trades near $0.9987. Despite stabilizing, the synthetic dollar has seen its market cap drop dramatically from $14.7 billion to $6.4 billion.

The incident underscores the risks facing synthetic stablecoins in a highly leveraged crypto environment, even when core protocols remain intact.

[johnblockbuster]

everyone is just printing stablecoins