Ethena Labs founder: USDe pegged to USDT is reasonable, minting and redemption functions operated well during market volatility
Foresight News reported that Ethena Labs founder Guy Young tweeted, "Although DeFi money markets have been heavily criticized for pegging USDe to USDT, I do believe this approach is reasonable to avoid liquidations caused by temporary price imbalances. In this incident, USDe's minting and redemption functions operated smoothly, and the price deviation in several Curve, Fluid, and Uniswap liquidity pools (with nine-figure on-demand liquidity) was less than 30 basis points, consistent with the USDC and USDT prices on certain exchanges. If oracles could reference the deepest global USDe liquidity pools, no one would be liquidated on any money market. Severe price discrepancies were limited to a single venue, which referenced the oracle index on its own order book rather than the deepest liquidity pool, and faced deposit and withdrawal issues during the event, preventing market makers from closing the loop."
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