decoupling

Trading StrategyIn-depth investigation reveals that the fundamental reason for the de-pegging of Stream XUSD is not the Balancer hacking incident, but rather the failure of the Delta neutral strategy during the historic liquidation on October 11.Although Stream claims to adopt a Delta neutral hedging strategy (1:1 configuration of spot and short positions), during the extreme volatility on October 11, the exchange's automatic deleveraging (ADL) system forcibly liquidated its positions, breaking the original hedging balance. This led to a direct loss of Stream's principal, which in turn triggered the de-pegging of XUSD.Underlying issues include: a severe lack of transparency (only $150 million out of $500 million TVL visible on-chain), high-risk off-chain trading strategies (including selling volatility strategies), and excessive leverage (recursive borrowing through Elixir). Analysis indicates that Stream is merely one of the first victims to surface.Given that October 11 was an unprecedented extreme liquidation event, it is expected that more DeFi projects will face similar issues in the future, highlighting the urgent need for stricter risk transparency standards in the crypto market.

Market CoinGecko data shows that Staked Stream USD (XUSD) has expanded its de-pegging to 62.1%, currently priced at $0.5504.

ChainCatcher news, the Bank of Korea released a report on Monday warning about won-denominated stablecoins, emphasizing that private issuers lack the institutional trust necessary to maintain currency stability, and suggesting that stablecoin issuance should be led by traditional banks.The central bank pointed out that currency stability relies on trust rather than technology, citing examples of stablecoin de-pegging risks, such as the Terra/Luna collapse and USDC dropping to $0.88 during the Silicon Valley Bank crisis. The report particularly emphasized that non-U.S. dollar stablecoins face more severe risks due to limited circulation. Despite the warnings, financial innovation in South Korea continues to advance. In September, digital asset custody firm BDACS partnered with Woori Bank to launch Korea's first fully compliant won-backed stablecoin, KRW1, which is built on the Avalanche blockchain.

ChainCatcher news, Binance issued a statement in response to the market volatility triggered by global macro events from 04:50 to 06:00 Beijing time on October 11. The official statement indicated that the overall crypto market experienced a sharp decline due to concentrated sell-offs by institutions and retail investors. Binance confirmed after a thorough review that the core contract and spot matching engine and API trading remained normal, with only some modules experiencing brief technical issues after 05:18 Beijing time on October 11, leading to certain assets becoming unpegged.For users affected by this incident, Binance has completed compensation within 24 hours, amounting to approximately $283 million, primarily covering collateral liquidation losses caused by the unpegging of USDE, BNSOL, and WBETH. Additionally, Binance will provide compensation to users who suffered losses due to delays in internal transfers and Earn product redemptions.Regarding the extreme low prices observed in certain spot trading pairs, Binance explained that this was mainly caused by historical limit orders being triggered under one-sided liquidity, UI display precision issues, and other reasons, rather than a system error. The official commitment is to further optimize the interface display and liquidity mechanisms, and to continuously provide updates on compensation progress.Binance reminds users that the current crypto market is highly volatile, and trading should maintain risk control and reasonable position allocation.

ChainCatcher news, Venus Protocol stated on social media that some Venus users were affected by the decoupling of the WBETH price during market liquidation.Venus Labs will compensate verified users who suffered losses due to the WBETH decoupling issue that occurred from 5:36 to 6:16 Beijing time on October 11, 2025, through the protocol risk fund.

ChainCatcher news, Binance has released an announcement regarding the handling of the decoupling events of USDE, BNSOL, and WBETH, as well as risk control optimizations.The announcement states that Binance has completed a comprehensive review of this incident and will compensate all affected contract, leverage, and borrowing users within 72 hours. The compensation will be automatically credited to the relevant user accounts.Specific compensation plan:All affected contract, leverage, and borrowing users who held USDE, BNSOL, and WBETH as collateral and were impacted by the decoupling between 05:36 and 06:16 (UTC+8) on October 11, 2025, will receive a differential compensation. The specific amount will be calculated based on the difference between the market price at 08:00 (UTC+8) on October 11, 2025, and the liquidation price.If a user's situation does not fall within the above scope, they can directly contact Binance customer service for manual assistance, obtain the form link to submit an application, and we will handle it on a case-by-case basis.In addition, to prevent similar situations from occurring again, Binance will further strengthen risk control and adjust relevant parameters, specifically as follows:Add the redemption price to the price index weights of BNSOL, WBETH, and USDE;Introduce a minimum price limit for the USDE index to enhance price stability;Increase the frequency of risk control parameter reviews to ensure dynamic adjustments based on market conditions.

ChainCatcher message, Binance announced on October 11, 2025, confirming that the three tokens USDE, BNSOL, and WBETH recently experienced a price decoupling issue, resulting in some users' assets being forcibly liquidated.The Binance team is currently conducting a comprehensive review of the affected users' situations and related compensation measures, while also strengthening risk management controls to prevent similar incidents from occurring again.

ChainCatcher news, according to market news, the Yala stablecoin YU once experienced a decoupling, with DEX Screener data showing that the price fell to a low of $0.2074, and has now rebounded to $0.8295.

ChainCatcher news, according to Lookonchain monitoring, since the FDUSD decoupling, Wintermute has transferred 75 million FDUSD to First Digital Labs.Lookonchain states that Wintermute likely purchased FDUSD at a discounted price during the decoupling and exchanged it 1:1 through First Digital, making a profit from it.

ChainCatcher message, the market shows that the decoupling of FDUSD has intensified, falling below 0.9 USD, currently reported at 0.895 USD.

ChainCatcher news, according to Binance market data, FDUSD has temporarily dropped over 3%, showing signs of decoupling.ChainCatcher previously reported that Sun Yuchen stated on the X platform that First Digital Trust (FDT) has effectively gone bankrupt and is unable to fulfill its obligations for customer fund redemptions. He strongly advised users to take immediate action to protect their assets and urged regulatory agencies and law enforcement to swiftly address these issues to prevent further significant losses.

ChainCatcher news, according to The Block, major altcoins have outperformed Bitcoin in both weekly and monthly indicators, demonstrating greater stability, even amidst Bitcoin's recent volatility. After Bitcoin reached an all-time high of $103,000, its price has dropped over 5% in the past 24 hours, falling below the $100,000 mark. In contrast, altcoins like Ethereum and Solana have only seen a slight pullback of about 1% during this decline.Bitwise's Head of Research in Europe, André Dragosch, stated, "Since the beginning of November and the U.S. elections, an increasing number of altcoins have outperformed Bitcoin. The Altcoin Season Index shows that 85% of the altcoins it tracks have outperformed Bitcoin in the past 30 days. Additionally, altcoins seem to be driven by a more diversified investment narrative, with their performances showing an increasingly widening divergence."André Dragosch pointed out that Bitwise's data indicates that the correlation between Bitcoin and major altcoins is weakening. He explained, "The performance correlation between altcoins and Bitcoin has significantly decreased. A lower correlation means that altcoins now have a greater likelihood of achieving excess returns or outperforming Bitcoin compared to before the U.S. elections."

According to ChainCatcher news, monitored by on-chain analyst Yu Jin, an address suspected to belong to Continue Capital was marked by Arkham and lost 15,079 fwDETH (worth $35.98 million) due to phishing 7 hours ago.Subsequently, the phishing perpetrator quickly converted the stolen assets into safe assets by swapping DETH back to ETH. However, due to insufficient liquidity in the DETH pool, only 2,288 ETH was received in exchange for 14,079 DETH. The pool was completely drained, leading to a significant decoupling of DETH/WETH.The value of the stolen assets directly shrank by 85%: from $35.98 million to $5.5 million.