Overview

• USDe briefly traded at $0.65 on Binance during a sell-off tied to the U.S. tariff announcement on China that drove more than $19 billion in crypto liquidations before quickly returning to parity.
• Ethena Labs said mint and redeem functions stayed online throughout and reiterated that USDe is overcollateralized, citing unrealized PnL created as perpetuals traded below spot during the cascade.
• Price dislocations differed by venue, with Bybit showing about a 5% dip and Kraken less than 1%, while the founder argued the move was a Binance-specific pricing outlier and Aave’s $1 mark limited on-protocol effects.
• Binance stated it is reviewing affected accounts and liquidations and is considering appropriate compensation measures for users impacted by the price deviation.
• ENA fell as much as about 40% before a partial rebound, while on-chain data showed large holders adding to positions following fresh proof-of-reserves indicating backing above $12.5 billion and an overcollateralization buffer near $66 million.