According to CryptoSlate data, USDe’s market value dropped from $14.8 billion on Oct. 10 to $12.6 billion by Oct. 12.
The decline coincided with a Binance pricing glitch that also affected wrapped assets like wBETH and BNSOL, temporarily breaking their links to underlying tokens.
USDe’s price dislocation came amid one of crypto’s largest liquidation events this year.
Still, the project insists the depeg was localized to Binance and not systemic.
“While USDe wicked down on every CEX, it did not do so uniformly. Bybit briefly hit $0.95 then quickly recovered, yet Binance depegged a crazy amount and took forever to regain the peg. Curve meanwhile dipped a mere 0.3%.”
Considering this, Young said:
“I do not think it is accurate to describe this is a USDe depeg when a single venue was out of line with the deepest pools of liquidity that experienced no abnormal price deviations whatsoever.”
Although USDe is not marketed as a conventional stablecoin, its expanding role in crypto’s financial plumbing means even small pricing errors can have disproportionate effects.
The past weekend’s disruption proved how a venue-specific malfunction can ripple through markets and cause real losses.
Such disruptions can trigger forced liquidations in lending markets, reduce liquidity in BTC and ETH trading pairs, and distort the reference price used across decentralized platforms.
According to him:
“Such funds typically employ relatively low-risk strategies such as delta-neutral basis trading or money-market investments, but they still carry inherent risks — including ADL events, exchange-related incidents, and custodian security breaches.”
Xu noted that platforms using USDe as collateral must apply adaptive risk controls rather than treating it like traditional stablecoins. He argued that ignoring the asset’s structural nuances could introduce systemic exposure to the broader crypto market and turn a localized fault into a sector-wide crisis.
