Ethana’s dividend -bearing stableecoin, USDE, briefly lost its $ 1: $ 1 stick during the recent sharp market sales triggered by US President Donald Trump’s announcement of a 100% additional customs duty in China.
At Binance, USDE dropped to 65 cents before quickly regaining parity with the dollar under what is seen as Crypto’s biggest ever liquidation event in the US dollar value. More than $ 19 billion in liquidations occurred over only 24 hours.
USDE, which currently offers a yield of 5.5% to holders, is supported by a mixture of cryptocurrencies and uses a basic trade strategy, an economic setup aimed at taking advantage of price holes between spot and futures markets.
Trump’s shock message sent investors who fled to secure ports like gold and US treasuries.
Usd’s dip had major effects, according to crypto trader and economist Alex Krüger, as Tokens, which is not so actively traded on centralized exchanges “did not suffer so much” and some were quickly returned from the fall.
This is like exchanges like Binance and Bybit marked the price closer to trading in real time, while lending protocols such as Aave had USDE hard -coded it to $ 1, which cut them off against some of the immediate effects of brief Depew.
Ethena Labs said in a social media post that USDE remains over -collateralized and that widespread liquidations affected the secondary market price of USDE.
“We can confirm that the Mint & Redeem functionality has remained operational without any downtime experienced, and USDE remains over -collateralized,” Ethena Labs wrote in the post.
“Due to liquidations, eternal contracts have been and continues to act under the place. This creates further unexpected upnl within USDE, because Ethena is short, these contracts are currently being realized in favor of the protocol,” the project added.
Binance has said that it is undergoing affected accounts and liquidations along with the “appropriate compensation measures.”
Ethena’s steering token, Ena, fell as much as 40% under the object glass before it started to recover. It’s down almost 25% in the last 24-hour period.
