Altcoins News
By Evie Vavasseur
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Isolated Price Slip Highlights Exchange Risk. During the market crash, USDe experienced a sharp price decline exclusively on Binance.
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Ethena’s Core Systems Remained Operational. Despite the price fluctuations on Binance, Ethena’s minting and redemption systems continued to…
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Leveraged Traders Bear the Brunt of Price Slips. Price deviations, even temporary ones, can have significant consequences for leveraged traders.
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External Oracles as a Preventive Measure. To mitigate these risks, Young recommends using external oracles with deep liquidity for USDe…
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USDe’s Popularity and Market Position. USDe has grown in popularity among traders due to its participation in basis and interest trades,…
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Lessons from the Incident. The Binance-only USDe price slip underscores several key lessons for stablecoin users and traders:
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Moving Forward. Ethena’s founder has emphasized that the USDe protocol itself remains fully operational, and the…
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Conclusion. The October 10 price slip on Binance highlighted vulnerabilities in exchange-specific price…
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The recent crypto market turbulence on October 10, which wiped out over $19 billion in leveraged positions, has once again highlighted the challenges stablecoins face during…
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During the market crash, USDe experienced a sharp price decline exclusively on Binance. In contrast, other platforms showed minimal deviation: Bybit’s USDe price dropped by just…
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Young clarified, “It is not accurate to describe this as a USDe depeg when a single venue diverged from the deepest liquidity pools, which experienced no abnormal price deviations.
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Furthermore, Young highlighted that decentralized exchanges like Curve [CRV], Uniswap [UNI], and Fluid [FLUID] recorded price variations within 30 basis points, comparable to…
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Price deviations, even temporary ones, can have significant consequences for leveraged traders. In leveraged trading, collateral is used to amplify exposure.
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In the case of USDe on Binance, a 35% drop meant that $100 of collateral could effectively shrink to $65.
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By leveraging external pricing data, exchanges and DeFi protocols can ensure that USDe’s value reflects broader market conditions rather than isolated anomalies on a single…
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