According to Ethena Labs, the temporary 65-cent drop of USDe on Binance was caused by liquidity and oracle issues unique to the exchange, not a global de-pegging event.
During a market sell-off, Ethena’s synthetic dollar USDe briefly fell to $0.65 on Binance due to the exchange’s lack of direct dealer relationships and reliance on its own illiquid order book. The price discrepancy was isolated to Binance, as decentralized exchanges like Curve and Uniswap maintained near-peg prices within 1%. Despite the event, USDe remained overcollateralized by around $66 million, and redemptions continued smoothly, with supply dropping from $9 billion to $6 billion. Ethena Labs confirmed the stability of USDe’s peg and redemption mechanism, while Binance faced criticism for inadequate oracle references and forced liquidations.