Why depeg Is Trending Today?

Binance, the world's largest cryptocurrency exchange, incurred significant losses after a sudden depeg incident involving its synthetic asset, USDe. The depeg, which occurred due to market conditions and an oracle issue on Binance, led to a market crash and massive liquidations. Binance subsequently reimbursed users to the tune of $283 million. Meanwhile, OKX CEO and Ethena founder defended their tokens, arguing that the incident was not a true depeg but rather a result of market manipulation or low liquidity. Tether's CEO praised USDT's stability, contrasting it with the depegged low liquidity tokens.

Binance has allocated $283 million to compensate users affected by the depeg of the USDe stablecoin on its platform. The compensation follows a depeg incident that occurred on Friday, during which the stablecoin's price deviated significantly from its intended $1 peg. Binance has confirmed that it will cover user losses resulting from this incident. Ethena, a blockchain analytics firm, has suggested that the depeg was caused by an issue with Binance's oracle, which is responsible for feeding price data into the stablecoin's algorithm. However, Binance has not yet officially confirmed this as the cause. The company has stated that it will provide further details on the compensation process in the coming days.