USDe was trading close to $0.65.
The disparity happened in the secondary market.
In the midst of the chaos, USDe, the stablecoin of Ethena lost its parity with the dollar in secondary markets, specifically on Binance, where it was traded close to $0.65.
Although the fall was temporary, the episode set off alarms in the community, which recalled previous cases of algorithmic stablecoin collapses.
Ethena explained that the disparity did not affect the internal workings of the protocol or the minting or redemption operations. Its delta-neutral mechanism, which combines short positions in futures with assets like stETH, continued to operate normally.
However, extreme market volatility disrupted arbitrage flows and caused a temporary dislocation in secondary market prices.
The Ethena Labs team publicly acknowledged the volatility experienced by USDe and assured that the stablecoin remains fully overcollateralized. In its official statement, the company stated that “the minting and redemption functions remained operational” and that collateral levels will be reinforced to increase the protocol’s resilience against extreme scenarios.
«The minting and function of redeeming USDe has remained operational and without interruptions. USDe remains overcollateralized,” Ethena Labs clarified in its X account.
He analyst Omer Goldberg highlighted that the episode demonstrated the critical role of price oracles in times of high volatility.
As he explained, the design implemented by Chaos Labs in Aave made it possible to avoid a cascade of major liquidations, protecting around 4.5 billion dollars in positions and avoiding losses estimated at 180 million.
Goldberg pointed out that this methodology, based on Ethena Proof of Reserve and in a deep analysis of the protocol, it kept user funds safe.