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.
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