Opinion: USDe is a financial certificate rather than a stablecoin. The misplaced marketing narrative is intended to expand its use cases.
On October 11th, Conflux co-founder Forgiven expressed his views on USDe, a project under Ethena Labs, stating that USDe is essentially a financial certificate rather than a stablecoin. Some users also pointed out that USDe is a Hedge Fund Product with a rebase mechanism that can anchor the NAV to 1 US dollar indefinitely. The claim that "USDe is a stablecoin" is the biggest misalignment in marketing positioning, which is intentional in order to attract more use cases, such as payments, trading against the US dollar, and margin trading. However, the reality is that USDe is a radical financial product innovation.
Vida, founder of Today's Formula News, stated that the recent massive liquidation may have originated from "USDe arbitrageurs' loop lending positions being liquidated", causing a decrease in the collateral capacity of USDe as a unified account collateral, leading to more market makers using USDe as collateral being liquidated. Subsequently, Ethena released a reserve proof in response to market doubts, stating that USDe still has approximately $66 million in excess collateral.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Uniswap Foundation provides up to $9 million in funding to Brevis for building a trustless Routing Rebate program
The Uniswap Foundation has granted funding to Brevis to develop and implement a "Trustless Routing Rebate Program," offering up to $9 million in gas fee rebates to routers integrating v4 Hook pools. This system will utilize Brevis' ZK Data Coprocessor and Pico zkVM to compute and verify all rebate amounts in a trustless manner, without relying on centralized databases or hidden computation. By providing economic incentives to aggregators, this initiative encourages them to prioritize Hook integration, thereby accelerating the adoption of v4.

Trump Nominates Michael Selig to Lead CFTC Amid Crypto Oversight Push

XRP Price Holds at $2.58 as Traders Monitor Critical $2.60 Resistance Zone

