Ethena’s USDe Depegging Sparks Crypto Market Chaos

A recent crisis involving Ethena’s USDe stablecoin exposed vulnerabilities within synthetic asset models and triggered widespread financial turmoil in the crypto market. The token, pegged to the US dollar on Binance, de-pegged to $0.65 amidst a chaotic series of liquidations, resulting in a staggering $19B in losses across various markets. This incident raises serious questions about the stability of synthetic stablecoins and their ability to withstand market volatility.