usde

suiUSDe, supported by Ethena, has launched on the Sui mainnet, becoming the network's first "synthetic dollar" token. SUI Group has established a new suiUSDe yield vault on Bluefin's Ember Protocol, with an investment of 10 million dollars.

According to CoinDesk, the Brazilian Congress's Science, Technology, and Innovation Committee has approved a bill report aimed at banning algorithmic stablecoins.The bill will prohibit the issuance or trading of stablecoins like USDe from Ethena and Frax, which maintain their value through algorithms rather than fully collateralized assets, requiring all stablecoins issued in Brazil to be fully backed by segregated reserve assets. The bill also raises transparency requirements and classifies the issuance of uncollateralized stablecoins as a new criminal offense, with violators facing up to eight years in prison. For stablecoins issued abroad (such as USDT and USDC), the new regulations require that only companies authorized to operate in Brazil can offer such assets, and exchanges are responsible for ensuring that their issuers comply with regulatory standards similar to those in Brazil, or else they must bear the related risk management responsibilities themselves. The bill still needs to be reviewed by Brazil's Finance and Taxation Committee and the Constitution, Justice, and Citizenship Committee before being submitted to the Senate to become formal law.

Coinkarma founder Benson Sun stated that Binance is indeed responsible for the crash on 1011, but the core issue does not lie with USDe, as the timeline does not match. The lowest point of the market crash was at 5:20, while USDe reached its lowest point of $0.65 at 5:54. The extreme de-pegging occurred 30 minutes after the market began to rebound, indicating that the extreme de-pegging of USDe was a secondary disaster rather than the trigger for the crash.Benson indicated that based on an analysis of extreme market conditions over the past six years, the price difference between Binance and other trading platforms during each extreme event has typically been within 5%. However, on the day of 1011, more than half of the cryptocurrencies had the lowest prices on Binance, with many deviations exceeding 50% or even 100%. Such a scale of price misalignment has not been seen in any previous black swan events. Additionally, at that time, the price of the same cryptocurrency in the USDT trading pair was significantly lower than that in the USD trading pair. This suggests that there was likely a problem with Binance's system at that time.If the point of failure was elsewhere, the most liquid Binance should not have the lowest prices. Furthermore, the withdrawal of liquidity by market makers is not the main cause. The public opinion expressed by OKX Star has sparked discussion, which is a good thing, but the focus may have been misplaced.

OKX CEO Star posted on the X platform, stating, "The events of October 10 were caused by irresponsible marketing activities from certain companies. Hundreds of billions of dollars were liquidated. Many industry participants believe that the damage is more severe than the FTX collapse. The root cause is not difficult to identify.What actually happenedBinance launched a temporary user yield program, offering a 12% annualized yield on USDe, while allowing USDe to be used as collateral, enjoying the same treatment as USDT and USDC, with no effective restrictions.Binance users were encouraged to convert USDT and USDC into USDe for substantial returns, but there was insufficient emphasis on the potential risks. From the user's perspective, trading with USDe was no different from using traditional stablecoins—yet the actual risk situation was significantly higher.As users took the following actions, the risks escalated further: • Converting USDT/USDC to USDe • Using USDe as collateral to borrow USDT • Converting the borrowed USDT back to USDe • And repeating this cycleThis leverage cycle generated artificial annualized yields of 24%, 36%, or even 70%+, simply because they were widely regarded as "low risk" due to being offered by major platforms. Systemic risk rapidly accumulated in the global crypto market.At that time, even a small market shock was enough to trigger a collapse. When volatility hit, USDe quickly decoupled. This was followed by a chain of liquidations, and the risk management weaknesses surrounding assets like WETH and BNSOL further amplified the crash. Some tokens traded close to zero prices at one point. Global users and companies (including OKX clients) suffered significant losses, and recovery will take time."

Binance released a review report on the market flash crash event, stating that the main driving factors of market turbulence include macroeconomic shocks, risk control mechanisms of market makers, and congestion on the Ethereum network. Individual issues on the platform were not the cause of this market flash crash.The three tokens widely mentioned as decoupled (USDe, BNSOL, WBETH) experienced their decoupling at 05:36 (UTC+8), later than the time window of the most severe market fluctuations from 05:10 to 05:20 (UTC+8), and approximately 75% of liquidations had already occurred before the decoupling of these three tokens on that day. The main driving factor of this event was the overall risk-averse sentiment in the market and the chain reaction triggered by liquidations, rather than individual anomalies on the platform.Throughout the process, Binance's core matching engine, risk verification, and liquidation systems remained stable and did not experience interruptions. In the report, Binance acknowledged two technical failures that occurred on that day: first, during the period from 05:18 to 05:25 (UTC+8), during a concentrated market sell-off, the asset transfer subsystem of Binance experienced a performance degradation of about 33 minutes, affecting some users' ability to transfer funds between spot, wealth management, and contract accounts. The matching, risk control, and liquidation systems continued to operate normally, and individual users seeing their balances displayed as "0" was a front-end display issue, not a loss of assets; second, from 05:36 to 06:15 (UTC+8), under conditions of a significant drop in market order book depth, on-chain congestion, and slowed cross-platform rebalancing, the indices for USDe, WBETH, and BNSOL showed abnormal deviations. The report stated that during times of thin liquidity and slowed cross-platform capital flow, the price fluctuations within the platform accounted for an excessively high proportion in the index calculation.

According to Onchain Lens monitoring, a whale involved in circular lending has further purchased 985.5 XAUT in the past 24 hours, spending 4.98 million USDe. Currently, this whale holds 11,029.5 XAUT, worth 55.98 million USD, with an unrealized profit of 5.86 million USD.

According to OnchainLens monitoring, as gold briefly broke through $5,000, a whale employing a circular lending strategy purchased an additional 604.65 XAUT using $3 million USDe in the past 24 hours. Currently, this whale holds a total of 10,044 XAUT, worth approximately $50.2 million, with an unrealized profit of about $5.07 million.Address: 0x85220e6aa75238ba9c80353c6330ebee5142230e

According to Onchain Lens monitoring, a giant whale is engaging in circular lending and has purchased 9,439 XAUT at a price of $4,463 using 42.13 million USDe over the past 25 days. The current floating profit is $3.45 million.

According to the official announcement, Bithumb will launch the USDE/KRW trading pair.

According to the official announcement, Upbit will launch the USDE/KRW, BTC/KRW, and USDT/KRW trading pairs.

UPBIT will launch trading for Ethena USDe (USDE) on January 14, 2025, at 18:00, supporting KRW, BTC, and USDT markets. Users can start depositing 1 hour and 30 minutes after the announcement is made, and trading will begin at the aforementioned time.

According to The Block, the Safe Foundation announced on Tuesday a strategic partnership with USDe issuer Ethena Labs, aimed at reducing the Gas fee costs for USDe transactions on the Ethereum mainnet and enhancing the rewards earning potential for USDe stored in Safe multi-signature wallets.Safe accounts holding USDe will now receive "a 10x multiplier on the points accumulated during the current Ethena points program period." The two companies stated, "This collaboration marks a broader strategic initiative by Safe to drive the stablecoin economy towards a self-custody model, and this partnership formally establishes both parties' commitment to positioning the Safe self-custody wallet ecosystem as the preferred platform for accessing Ethena products."

Ethena Labs announced that Anchorage Digital Bank has officially become one of the custodians supporting the assets behind USDe, joining Copper and Ceffu in the custody lineup. Anchorage Digital Bank is the first federally chartered crypto-native bank in the United States, regulated by the Office of the Comptroller of the Currency (OCC).The agreement has currently enabled addresses starting with 0xAFBb and 0xF270 (both storing Ethereum) as isolated wallets, and they will be included in the weekly published proof of reserves. Starting from January 2026, Anchorage will provide monthly signed and publicly available custody proofs. Additionally, this custody solution will be integrated into the USDe minting and burning smart contracts, allowing users to instantly exchange USDe for stablecoins on demand.

According to Cointelegraph, a report by 10x Research shows that Ethena's synthetic stablecoin USDe has seen its market capitalization evaporate by about $8.3 billion since the market crash, dropping from $14.7 billion to its current approximately $6.4 billion, nearly halving. This plunge reflects a sharp decline in investor confidence in leveraged and synthetic collateral models.The market crash was the largest liquidation event in the history of the crypto market, leading to over $19 billion in crypto positions being liquidated, with a total market capitalization evaporating by about $1.3 trillion, accounting for nearly 30% of the total market cap at the time. During this period, USDe also briefly depegged to around $0.65, but Ethena Labs founder Guy Young stated that this temporary depegging was due to an internal oracle issue at the exchange, not a problem with the protocol or collateral assets.Currently, the price of USDe has recovered to $0.9987, but market activity remains sluggish, with trading volume down about 50%. Bitcoin spot ETFs listed in the U.S. have seen a net outflow of about $5 billion since the end of October. Analysts point out that this weakness is more influenced by the withdrawal of regulatory capital rather than retail selling.

Ethena Labs announced the launch of the HyENA trading platform, a decentralized exchange based on the Hyperliquid HIP-3 standard, supporting perpetual contract trading collateralized by USDe.Features of the platform include a 12% annual yield for long-term USDe collateral, approximately 5% annual yield for other balances, and a one-click feature to migrate from USDC to USDe.

Ethena Labs announced a partnership with Anchorage Digital, the only federally chartered cryptocurrency bank in the United States, which provides compliant infrastructure for institutions and will bring in-platform rewards to USDtb and USDe holders.

According to a report by theblock, the total locked value (TVL) of Ethena's synthetic stablecoin USDe has dropped from $14.8 billion in October to the current $7.6 billion, a decline of over 50%.The sharp decline is mainly due to the liquidation of a large number of leveraged loop strategies emerging in DeFi protocols, particularly in lending markets like Aave. Currently, the yield of USDe (around 5.1%) has fallen below the borrowing cost of 5.4% for USDC on AAVE, leading some participants to close their positions.The report states that despite the decrease in TVL, the usage of USDe is on the rise, with on-chain transaction volume exceeding $50 billion last month, indicating that even as speculative positions are gradually unwound.

Tom Lee, in an interview with CNBC, explained to the host why the crypto market experienced a sharp decline: "The crypto market has a lot of automated processes. Among them, ADL (Automatic Deleveraging) is a typical example—when the asset or collateral price of a user's account drops, the system will trigger forced liquidation just like a margin call in traditional markets. While USDE maintains a price of 1 dollar on other trading platforms, the internal quote on one trading platform plummeted to 0.65 dollars. Due to the lack of liquidity on that trading platform, the ADL mechanism was triggered, leading to a large number of accounts being automatically liquidated, and this chain reaction eventually spread to the entire market. Because of this, thousands of crypto accounts were wiped out in minutes—even though they were profitable just moments before."As for who exactly is responsible? While I know the specific names of the institutions, I prefer not to name them. Essentially, this is a systemic risk caused by a code vulnerability: the trading platform should have collected cross-platform price data to set stablecoin valuations but mistakenly relied on its internal quoting system. This incident led to a significant reduction in the capital of market makers and trading institutions. More seriously, when the trading volume shrinks and causes a decline in coin prices, these institutions need to prepare more capital to maintain operations, forcing them to further shrink their balance sheets—this creates a vicious cycle that continuously erodes the foundation of the market. The essence of the 2009 crisis was the loss of control over real estate and subprime mortgage collateral. Although Wall Street established mechanisms like CDOs to cope, the subsequent over-regulation had negative effects. Today, the ADL code vulnerability and price mechanism flaws in the crypto space will also eventually be corrected. Fortunately, we will not repeat the mistakes of over-regulation, but we must face the impacts brought by the liquidation mechanism. The massive liquidation that lasted for eight weeks in 2022 is still fresh in our minds; this is the essence of DeFi: code will inevitably have vulnerabilities, and leverage is the real source of risk. Investors should not misuse leverage in the crypto market.

Ethena Labs recently proposed a new mechanism aimed at supporting orderly liquidity and stability in the market by repurchasing and burning USDe when secondary market prices are significantly below the pegged value.This proposal is a risk management response to the event where the USDe price briefly decoupled to $0.65 during extreme market volatility on Binance. Core mechanism repurchase conditions: activated only during "severe market dislocations," with an initial price threshold set at when the USDe price trades at $0.99 or lower. Funding source: repurchases will use available stablecoins (such as USDT) from the existing USDe reserves. Amount: it is proposed to utilize 1.2% of the total USDe reserve assets, which is approximately $95 million based on the current USDe supply.Operational method: repurchases will be executed by placing buy orders on the centralized exchange (CEX) order book, using an off-chain solution, without directly depositing reserve assets into the exchange. Immediate burn: the repurchased USDe will be immediately burned. Protocol benefits: the net impact of this mechanism will be: increased collateralization ratio: purchasing USDe below $1 can capture price discrepancies, increasing protocol reserves and thereby enhancing the collateralization ratio of USDe. Reduced supply: burning USDe will decrease its circulating supply. Price support: during market pressure, directly providing buy support in the secondary market to stabilize the USDe price.Addressing gas fees: Ethena can utilize captured price discrepancies to cover high gas fees, ensuring that arbitrage operations can still be conducted during network congestion, which was one of the reasons market makers were restricted on October 10. Background review: during the market volatility on October 10, although Ethena's core minting/redeeming functions operated normally and processed over $2 billion in instant redemptions within 24 hours, the lack of direct USDe minting/redeeming integration on Binance and traders encountering withdrawal issues on CEX led to a severe decoupling of the USDe/USDT spot price on Binance.This proposal aims to prevent the "cyclical loop of USDe liquidations" effect caused by similar events through proactive intervention in the secondary market, bringing net benefits to the protocol. Members of the risk committee have received this proposal and will provide recommendations in due course.