USDe, stablecoin in the midst of turmoil Ethena lost its parity with the dollar on secondary markets, especially Binance, trading close to $0.65.
Although the decline was temporary, the episode alarmed the community and reminded us of past instances of algorithmic stablecoin collapses.
Ethena explained that this difference did not affect the inner workings of the protocol or the operation of minting or redemption. The delta-neutral mechanism, which combines short futures positions with assets such as stETH, continued to operate normally.
but, Extreme market volatility disrupted arbitrage flows and caused temporary fluctuations in secondary market prices.
The Ethena Labs team publicly acknowledged the volatility experienced by USDe and ensured that the stablecoin remains fully overcollateralized. In an official statement, the company said that “minting and redemption capabilities will remain operational” and collateral levels will be strengthened to make the protocol more resilient to extreme scenarios.
“USDe minting and redemption functions continue to operate without interruption. USDe remains overcollateralized,” Ethena Labs revealed in its X account.
Analyst Omar Goldberg emphasized that this episode illustrates the important role of price oracles in times of volatility.
As he explained, the design implemented by Aave’s Chaos Labs was able to avoid a large chain of liquidations, protecting approximately $4.5 billion in positions and avoiding an estimated $180 million in losses.
Goldberg pointed out that this methodology is based on Ethena. proof of reserve And a detailed analysis of the protocol ensured that users’ funds remained safe.
(Tag translation) Cryptocurrency
