X @Ansem

USDe Stability Analysis - The analysis indicates that USDe did not depeg during the market volatility, despite claims circulating [1] - USDe maintained a tight peg on its primary venue, Curve, throughout the episode [5] - USDe was fully collateralized and increased its backing collateral over the weekend [7] Binance-Specific Issues - Binance experienced a flash crash specific to its platform, which better market structure could have prevented [5] - Binance's instability during the liquidation event hindered market makers' ability to arbitrage due to API failures and blocked withdrawals/deposits [2] - Binance lacked a primary dealer relationship with Ethena, preventing direct minting and redemption on the platform [3] - Binance's poorly implemented oracle and aggressive liquidation mechanisms exacerbated the price decline of USDe [4] Market Structure and Liquidity - USDe's most liquid venue is Curve, with hundreds of millions of dollars in standing liquidity, compared to tens of millions on exchanges like Binance [2] - The incident highlights the importance of robust market infrastructure and liquidity management for exchanges [6][7] - The analysis draws a distinction between a dislocation event and a true depeg, referencing the USDC depeg in 2023 as an example of the latter [5]