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
Ripple-Supported Evernorth Now Possesses a Whopping 261 Million XRP
Securing Massive XRP Treasury Ahead of Nasdaq Public Listing through Armada Acquisition Corp II Merger

Bitcoin and ETH ETFs Lose Ground as Investors Pivot Back to Bitcoin: Is Altseason Over?
Shifting Market Preferences: Over $128 Million Withdrawn from ETH ETFs as Bitcoin Futures Activity Soars to Record Highs

Stablecoin Revolution: When Payments Are No Longer Tied to Banks, How High Is the FinTech Startup Ceiling?
The Federal Reserve is not only exploring stablecoins and AI payments, but also piloting a new proposal called "streamlined master accounts," which would allow qualified companies to directly access the Fed's settlement system. This move could open new doors for fintech innovation.

A $2 billion "game of probabilities": Is the prediction market approaching its "singularity" moment?
The prediction market is evolving from a marginalized "crypto toy" into a serious financial instrument.

