USDe’s price glitch on Binance raises structural stability concerns
The post USDe’s price glitch on Binance raises structural stability concerns appeared on BitcoinEthereumNews.com.
Ethena’s synthetic dollar, USDe, shed over $2 billion in market capitalization after briefly losing its dollar peg on Binance. The flash event exposed structural risks in crypto’s stablecoin plumbing. According to CryptoSlate data, USDe’s market value dropped from $14.8 billion on Oct. 10 to $12.6 billion by Oct. 12. The decline coincided with a Binance pricing glitch that also affected wrapped assets like wBETH and BNSOL, temporarily breaking their links to underlying tokens. At one point, USDe fell to $0.65 before recovering to parity. Binance later said it had reimbursed users over $283 million for losses related to the incident. Ethena USDe Depeg on Binance Inside the flash depeg USDe’s price dislocation came amid one of crypto’s largest liquidation events this year. Crypto markets experienced a steep sell-off after US President Donald Trump pledged a 100% tariff on Chinese imports, wiping out over $20 billion in digital-asset open interest. The resulting rush into safe havens like gold drained risk appetite and exposed weak points in leveraged crypto markets. USDe’s structure depends on the basis trade that involves shorting perpetual futures while holding long spot exposure through reserves in USDT and USDC. When funding rates fall sharply, this mechanism yields lower returns and puts redemption pressure on the system. Still, the project insists the depeg was localized to Binance and not systemic. Dragonfly’s Haseeb Qureshi noted that USDe “did not depeg” globally, by pointing out that: “While USDe wicked down on every CEX, it did not do so uniformly. Bybit briefly hit $0.95 then quickly recovered, yet Binance depegged a crazy amount and took forever to regain the peg. Curve meanwhile dipped a mere 0.3%.” USDe Price Performance Across Exchanges. (Source: Haseeb) Moreover, Ethena Labs founder Guy Young confirmed that mint and redemption remained operational throughout, processing $2 billion in redemptions…
