Ethena Founder Says USDe Depeg Due to Binance Oracle Issue

Guy Young, the founder of Ethena Labs, stated that the recent depegging of USDe on Binance, which fell to $0.65, was caused by an oracle issue within Binance rather than issues with the collateral or the token itself. Young emphasized that USDe operations remained unaffected, with $2 billion redeemed across various exchanges with only minor price deviations. The price drop was attributed to Binance using internal orderbook data instead of relying on an external price feed, which led to significant discrepancies. Additionally, the situation was exacerbated by a coordinated attack exploiting vulnerabilities in Binance's 'Unified Account' feature, allowing attackers to offload significant amounts of USDe, which contributed to the drop in price and subsequent liquidations across the platform. This chain of events resulted in losses up to $20 billion in the market, marking one of the largest liquidation events in crypto history. ElonTrades speculated that these attacks netted around $192 million in profits from short positions just before a panic-induced market meltdown.

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