Ethena’s USDe briefly loses dollar peg in record liquidation rout

Ethena’s yield-bearing stablecoin USDe plunged to ~$0.65 against the dollar on Binance amid massive crypto market liquidations, before recovering close to peg levels. The drop occurred as markets reeled during one of the largest liquidation events ($19B+). Analysts flagged stress in synthetic dollar structures and the dangers of leverage in volatile conditions.