The post Ethena Founder Issues Clarification on USDe Stability appeared on BitcoinEthereumNews.com.

Guy Young, the founder of Ethena Labs, the entity behind USDe, said the depegging event on Binance, which dropped the token’s value to $0.65, was an isolated issue.  Friday’s market crash wiped out nearly half a trillion dollars from the crypto market cap, with over $19 billion in leveraged positions liquidated.  USDe Depeg Was Due To An Oracle Issue  Guy Young, the CEO of USDe creator Ethena Labs, clarified that the USDe depeg on Binance occurred due to an internal oracle issue and not because of the underlying collateral. Young claimed that USDe minting and redeeming worked perfectly during Friday’s market crash, adding that traders redeemed $2 billion in USDe from various exchanges with minimal price deviations. Young stated that USDe fell from $1 to $0.65 on Binance during Friday’s crash because the exchange was using oracle data from its own orderbook, which offered thinner liquidity. Young had stated, 
“The severe price discrepancy was isolated to a single venue, which referenced the oracle index on its own orderbook, not the deepest pool of liquidity, and was facing deposit and withdrawal issues during the event, which did not allow market makers to close the loop. No one would have been liquidated on any money market with oracles referencing the deepest pools of liquidity for USDe globally.”
The Disruption On Binance  USDe’s drop created panic within the crypto community, with traders believing the stablecoin had depegged across the market. However, data revealed that the crash was confined to Binance, with prices stable on other trading platforms. Young clarified that the event was “isolated to a single venue,” highlighting that Binance faced deposit and withdrawal issues.  A Coordinated Attack? Traders had speculated whether the depegging was part of a coordinated attack to exploit the “Unified Account” feature on Binance, which allows…

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Filed under: News - @ October 15, 2025 3:24 am