No, Ethena's USDe Didn't De-peg During Friday's Crash

Ethena's synthetic dollar, USDe, briefly fell to 65 cents on Binance during a market sell-off, but this was not indicative of a global de-pegging event. The drop was confined to Binance due to its limited dealer relationships and reliance on a less liquid order book, leading to exaggerated price declines and liquidations. Other platforms like Curve and Bybit saw minimal deviations in USDe's price, maintaining its 1:1 peg to the USD.The lack of direct connections for minting and redeeming USDe on Binance hindered market making during the volatile period. This situation was exacerbated by Binance's price oracle referencing its own illiquid market. Despite the temporary drop on Binance, USDe maintained robust collateralization and redemption functions across major platforms, demonstrating its resilience. The incident highlights the importance of liquidity and efficient oracle systems in maintaining stablecoin pegs, and should not be generalized to the broader market.

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