Ethena Labs Founder: Still believe that USDe pegged to USDT is reasonable, minting and redemption have not crashed during market turbulence.

According to a report by Jinse Finance, the founder of Ethena Labs stated on the X platform that the Oracle Machine attempts to identify two different scenarios: one is a temporary misalignment of secondary market prices, and the other is a permanent depreciation of collateral. The latter has never occurred with USDe, and the likelihood of such a phenomenon occurring with most assets, including USDe, is much lower. Although the DeFi currency market has been criticized for USDe anchoring USDT, it is indeed considered reasonable as it can avoid liquidation caused by temporary price imbalances. Ethena provides on-demand proof of reserves to a few entities, some of which are Oracle Machine providers, including Chaos Labs and Chainlink. During the market turmoil this week, Ethena's minting and redemption functions did not go down, experiencing price dislocations through major liquidity venues on-chain, such as Curve, Uniswap, and Fluid. Over $9 billion in on-demand stablecoin Collateral is available for immediate redemption, but the actual usage is only a small fraction.