{"id":52360,"date":"2025-10-11T19:01:40","date_gmt":"2025-10-11T19:01:40","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=52360"},"modified":"2025-10-11T19:01:40","modified_gmt":"2025-10-11T19:01:40","slug":"ethenas-usde-briefly-loses-peg-during-19b-crypto-liquidation-cascade","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=52360","title":{"rendered":"Ethena’s USDe Briefly Loses Peg During $19B Crypto Liquidation Cascade"},"content":{"rendered":"
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Ethana\u2019s yield-bearing stablecoin, USDe, briefly lost its 1:1 dollar peg during the recent sharp market sell-off triggered by U.S. President Donald Trump\u2019s announcement of a 100% additional tariff on China.<\/p>\n

On Binance, USDe dropped to 65 cents<\/a> before quickly regaining parity with the dollar during what\u2019s seen as crypto\u2019s largest ever liquidation event <\/a>in U.S. dollar value. More than $19 billion<\/a> in liquidations occurred over just 24 hours.<\/p>\n

USDe, which currently offers a 5.5% yield to holders, is backed by a mix of cryptocurrencies and uses a basis trade strategy, a financial setup that aims to profit from price gaps between spot and futures markets.<\/p>\n

Trump\u2019s shock announcement sent investors fleeing to safe havens like gold<\/a> and U.S. Treasuries.<\/p>\n

USDe\u2019s dip had outsized effects<\/a>, according to crypto trader and economist Alex Kr\u00fcger, as tokens that aren\u2019t as actively traded on centralized exchanges \u201cdidn\u2019t suffer as much\u201d and some quickly recovered from the drop.<\/p>\n

This is as exchanges like Binance and Bybit marked the price closer to real-time trading, while lending protocols like Aave had USDe hardcoded it at $1, which shielded them from some of the immediate impact of the brief depew.<\/p>\n

Ethena Labs said in a social media post that USDe remains over-collateralized and that widespread liquidations affected the secondary market price of USDe.<\/p>\n

\u201cWe can confirm the mint & redeem functionality has remained operational throughout with no downtime experienced, and USDe remains overcollateralised,\u201d Ethena Labs wrote in the post.<\/p>\n

\u201cDue to liquidations perpetual contracts have been and continue to trade below spot. This creates additional unexpected uPNL within USDe, due to Ethena being short these contracts, which is currently in the process of being realised to the benefit of the protocol,\u201d the project added.<\/p>\n

Binance has said it\u2019s reviewing<\/a> affected accounts and liquidations, along with the \u201cappropriate compensation measures.\u201d<\/p>\n

Ethena\u2019s governance token, ENA, fell as much as 40% during the slide before it started to recover. It\u2019s down nearly 25% in the last 24-hour period.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Ethana\u2019s yield-bearing stablecoin, USDe, briefly lost its 1:1 dollar peg during the recent sharp market sell-off triggered by U.S. President Donald Trump\u2019s announcement of a 100% additional tariff on China. On Binance, USDe dropped to 65 cents before quickly regaining parity with the dollar during what\u2019s seen as crypto\u2019s largest ever liquidation event in U.S. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-52360","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/52360","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=52360"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/52360\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=52360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=52360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=52360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}