Core Viewpoint - The article discusses the recent significant decoupling of USDe, the third-largest stablecoin, during a cryptocurrency liquidation event, raising concerns about its stability and the mechanisms behind it [1][5]. Group 1: USDe Overview - USDe is a synthetic dollar stablecoin launched by Ethena Labs, ranking third in market capitalization among stablecoins, with a market cap exceeding $12 billion [1]. - Unlike traditional stablecoins like USDT and USDC, USDe is not backed by fiat currencies or hard assets but is a combination of crypto assets and derivatives, designed to hedge against price risks [6]. Group 2: Market Events - On Saturday morning, USDe's price dropped to a low of $0.65 within half an hour, leading to a significant liquidation event in the cryptocurrency market, with nearly $19 billion in long positions liquidated and over 1.6 million accounts affected [4][7]. - The liquidation event was exacerbated by a collective downturn in the cryptocurrency market, causing a massive sell-off of USDe as leveraged users faced automatic liquidations [7][9]. Group 3: Mechanisms and Risks - The mechanism behind USDe allows users to mint it by collateralizing their crypto assets, while the project simultaneously establishes short positions in the derivatives market to hedge risks [6]. - A dangerous "USDe circular lending" strategy emerged, where speculators borrowed other stablecoins against USDe to mint more USDe, creating a cycle that became unsustainable during market stress [6][9]. Group 4: Response and Future Outlook - Following the incident, Ethena Labs asserted that USDe remained over-collateralized and that the minting and redemption mechanisms were functioning correctly [9]. - The affected exchange announced compensation for impacted users and implemented a minimum price threshold for USDe to enhance price stability [9].

Group 1 - The company announced plans to establish joint ventures on November 22, 2024, and December 13, 2024, to diversify its investment portfolio and capture emerging opportunities in the digital asset sector [1] - The board has approved a strategic investment framework, allowing the company to invest up to HKD 4.5 million through its indirect non-wholly owned subsidiary, Tiankun Digital Limited, in cryptocurrency investments [1] - The strategy will employ a mature, delta-neutral quantitative approach focused on capital preservation and robust risk-adjusted returns [1] Group 2 - The core objective is to achieve uncorrelated alpha returns and diversify the company's investments, leveraging the expertise of a professional team and a solid multi-layer risk management framework [1] - This strategic investment will only involve the company's own capital and will not constitute regulated third-party asset management services, thereby avoiding licensing costs and regulatory complexities [1]

Core Viewpoint - The company plans to establish a joint venture to diversify its investment portfolio and capture emerging opportunities in the digital asset sector, with a strategic investment framework approved by its board [1] Investment Strategy - The company will invest up to 4.5 million HKD of its own capital in cryptocurrency through its indirect non-wholly owned subsidiary, Tiankun Digital Limited [1] - The investment strategy will employ a mature, Delta-neutral quantitative approach, focusing on capital preservation and robust risk-adjusted returns [1] Objectives - The core objective is to achieve uncorrelated alpha returns and diversify the company's investments, leveraging the expertise of its professional team and a solid multi-layer risk management framework [1] - This strategic investment will solely involve the company's own funds and will not constitute regulated third-party asset management services, thereby avoiding licensing costs and regulatory complexities [1]