USDe (Ethena USDe) has pumped 0.02% in the last 24 hours.

Gate News Bot report, on October 13, according to CoinMarketCap data, as of the time of this report, USDe (Ethena USDe) is currently priced at 1.00 USD, with a rise of 0.02% in the last 24 hours, reaching a high of 1.00 USD and a low of 0.99 USD. The current market capitalization is approximately 12.607 billion USD, a rise of 1.99 million USD compared to yesterday.

USDe is a digital dollar token launched by Ethena, aimed at providing a stable digital currency for the internet economy. Users can earn an annual yield of 5% through sUSDe. The supply of USDe has reached 10.42 billion USD and has covered 24 blockchain networks. USDe is applied in various fields such as DeFi, exchanges, and institutions, supporting functions like deposits, lending, and margin trading. Ethena also provides real-time asset allocation information and weekly reserve proof as transparency measures to ensure the stability and credibility of USDe.

Important news about USD recently:

1️⃣ USDe experienced a serious decoupling event On October 11, USDe experienced a severe decoupling amid a major crash in the cryptocurrency market, dropping to as low as 0.62 USD, with a decoupling magnitude of up to 38%. This event raised concerns about the stability of USDe in the market. Although the price has recovered to the 1 USD range, the market capitalization of USDe has shrunk by over 2.16 billion USD in a week, falling from approximately 14.82 billion USD to below 12.7 billion USD.

2️⃣ Ethena Labs releases reserve proof to address concerns In response to market skepticism, Ethena Labs released an unconventional pace of reserve proof. Several independent third-party institutions, including Chaos Labs and Chainlink, confirmed that USDe still has approximately $66 million in over-collateralization. Ethena Labs emphasized that the minting and redemption functions of USDe continued to operate normally during market turbulence, with no downtime reported.

3️⃣ USDe pegging mechanism sparks discussion The practice of pegging USDe to USDT has sparked discussions within the industry. The founder of Ethena Labs stated that this approach can avoid liquidation caused by temporary price imbalances. However, some industry insiders believe that using market price feeds and allowing high collateral ratios could amplify risks, especially in the arbitrage environment of centralized exchanges.

This incident highlights the challenges and risks faced by algorithmic stablecoins. Although the price of USDe has stabilized, the market still has concerns about its long-term stability and risk management mechanisms. Investors should remain cautious when participating in related transactions and fully assess potential risks.

This message does not constitute investment advice; investors should be aware of the risks of market volatility.