During Friday’s turbulent market sell-off, Ethena’s synthetic dollar, USDe, which maintains its 1:1 peg to the USD through cash-and-carry arbitrage, briefly dropped, hitting 65 cents on Binance.

However, this dramatic dislocation was confined to Binance as opposed to the global de-pegging of the USDe as social media chatter suggests.

Most trading of USDe occurs on decentralized platforms such as Fluid, Curve, and Uniswap – venues boasting hundreds of millions of dollars in liquidity.

By contrast, Binance holds only tens of millions in USDe liquidity. Price deviations on Curve were less than 100 basis points, consistent with the mild volatility in USDC and USDT on Binance. On Bytbit, USDe dipped only moderately, to around 92 cents on Bybit, a stark contrast to Binance’s plunge.

So what

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