USDe Depeg Incident on Binance
Ethena founder, Guy Young, stated that the recent depeg of USDe on Binance was "not a true depeg" and was isolated to the platform.
The incident was isolated to Binance because it uses its own oracle, tracking external prices with rich liquidity.
Young advised using external oracles with deep liquidity as a USDe price tracker. During the de-leveraging event on October 10th, USDe dropped to $0.65 on Binance, a 35% drop, while Bybit and Kraken experienced only 5% and 0.80% drops, respectively.
- USDe dropped to $0.65 on Binance, a 35% drop
- Bybit experienced a 5% drop
- Kraken experienced a 0.80% drop
The market is still recovering from the October 10th crash, which wiped out over $19 billion in leveraged positions.
Author's summary: Ethena founder comments on USDe depeg incident.