Ethena’s USDe Briefly Loses Peg During $19B Crypto Liquidation Cascade
Ethana’s yield-bearing stablecoin, USDe, briefly lost its 1:1 dollar peg during the recent sharp market sell-off triggered by U.S. President Donald Trump’s announcement of a 100% additional tariff on China.
On Binance, USDe dropped to 65 cents before quickly regaining parity with the dollar during what’s seen as crypto’s largest ever liquidation event in U.S. dollar value. More than $19 billion in liquidations occurred over just 24 hours.
USDe, which currently offers a 5.5% yield to holders, is backed by a mix of cryptocurrencies and uses a basis trade strategy, a financial setup that aims to profit from price gaps between spot and futures markets.
Trump’s shock announcement sent investors fleeing to safe havens like gold and…
