How Did USDe Experience a "Crash"?
USDe is a synthetic reserve stablecoin that maintains its exchange rate (approximately equivalent to 1 USD) through a delta-neutral strategy similar to a "tokenized hedge fund." However, its stability is not perfect, and under extreme market conditions, rapid price deviations can occur.
Event Overview
On October 11, 2025, a severe crash occurred on the Binance platform involving the stablecoin (USDe) and wrapped assets (BNSOL, WBETH). At one point, the price of USDe dropped to 0.656 USD (referenced against USDT), far below its expected value of 1 USD. The impact of the crash was not limited to USDe; similar assets like BNSOL and WBETH also experienced significant declines. This situation triggered a massive chain reaction in a short period, resulting in nearly 19.1 billion USD in market losses that affected approximately 1.6 million users, marking a "dark moment" in the crypto world on "1011."
(AiCoin Market Data Binance-USDE/USDT Real-time Spot Market)
Analysis of Delta-Neutral Strategy and USDe Issuance Logic
The foundation of this strategy lies in "offsetting volatility." For example:
Suppose you have 5,000 USD worth of ETH and simultaneously short 2,500 USD of other assets (like collateralized ETH positions). When ETH rises, your short position incurs losses, but your long position profits, keeping the overall value stable. This is known as "delta-neutral."
The issuance of USDe is based on its so-called "stable value." Users can generate 5,000 USDe by providing approximately 5,000 USD worth of ETH, which is then put into circulation. During this process, users can also earn the following benefits:
Staking Rewards: Staking ETH yields an additional annual return of about 3%-5%;
Funding Rate Earnings: During market operations, earnings from the "funding rate" on the short side (approximately 10%-20%);
These earnings further attract more USDe investors, gradually forming a stable income closed loop.
Core Issues of This Event
On the surface, the sudden sharp rise in prices of mainstream coins like BTC/ETH led to panic selling of USDe by investors. However, a deeper analysis reveals that the reasons for USDe's decoupling are complex, involving issues of leveraged stacking and collateral homogeneity.
Core Logic: A Three-Layer Self-Reinforcing Leverage Tower System
First Layer: Margin Loans
Users pledge USDe or other LST (like WBETH) assets to generate a leverage chain, achieving an annualized return of about 12%, which attracts a large number of participants.
Second Layer: Circular Leverage
Borrowing USDe stabilizes capital formation, which is then re-pledged to generate new USDe. This repeated cycle effectively adds leverage within the same system.
Third Layer: Contract Longs
Based on circular leverage, further positions are opened using borrowed funds. Each layer of stacking amplifies risk, creating a so-called "leverage within the capital pool ×10-50."
Final Risk Exposure: Failure of the Feedback Mechanism
When BTC/ETH rises, liquidity weakens, Gas fees soar, and trading delays occur (about 30 minutes), making it difficult to execute the liquidation chain, leading to a complete collapse of the leverage position.
The Nature of the USDe "Decoupling Incident": Collateral Homogeneity and Systemic Bubble
High Concentration and Homogeneity of Collateral
In pursuit of high returns, market participants heavily used WBETH and BNSOL to stake and generate USDe. This collateral became severely concentrated in a few assets, causing capital to collectively rush towards the same "exit" when the market changed, making it difficult to disperse risk.
Circular Application of Leverage Stacking
The USDe system relies on highly optimized structured loans and circular leverage. Once any link collapses (such as collateral liquidation under market panic), the entire chain will quickly enter a collapse mode.
Conclusion: There is No Permanent "Smooth Sailing"
As the market says: "The market has never had permanent smooth sailing. High returns are destined to come with high risks." USDe relies on complex leverage stacking, which may operate well in the short term, but any fluctuation in any link can quickly trigger a chain reaction. The failure of the feedback mechanism is the core reason for USDe's decoupling from 1.00 USD to 0.656 USD.
Extreme Market Conditions Test Stability: OKX Demonstrates Strong and Stable Technical Strength
The USDe decoupling incident not only sounded the alarm for stablecoin issuance models but also served as a stress test for the system capabilities of all trading platforms. OKX, with its outstanding stability and reliability, remained "as stable as a mountain" during this round of turbulence, becoming an industry benchmark that cannot be ignored.
OKX's Stability Performance
- No Downtime, No Lag: Even with a surge in orders due to extreme market conditions, the OKX platform maintained efficient operations;
- No Withdrawal Failures: User funds flowed smoothly, unaffected by the system;
- No Stablecoin Decoupling Phenomenon: OKX's stablecoin operation plan withstood the test.
Technical Breakdown: OKX's "Ironclad Risk Control System"
The strong stability of OKX comes from the following core mechanisms:
High Capacity Order Book: Even during a surge in trading volume, it can quickly process each order, ensuring smooth user operations.
Dynamic Risk Control Adjustments: Under extreme market conditions, the platform can adjust margin, hedging, and leverage ratios in real-time to prevent risk from spiraling out of control.
Liquidity Assurance Mechanism: Achieving continuous fund flow and preventing order blockage through efficient cooperation with liquidity providers.
This stability is not achieved overnight but is a reflection of the long-term accumulation of technology, data analysis capabilities, and risk warning strategies by the OKX team.
OKX Decentralized Exchange (OKX DEX): Double Insurance, Promising Future
In addition to the stability of the OKX platform itself, OKX has also launched revolutionary features in the DEX field, further enhancing user trading experience and volatility resistance:
On-chain Trading Entry: Users can trade on-chain directly through OKX DEX without transferring to external wallets.
Primary Market Traffic Support: Emerging projects like XDOG receive high exposure, increasing trading volume and further enhancing market activity.
Efficient Trading Experience: Fully optimized trading slippage helps users achieve quick and convenient asset swaps.
These innovative features introduced by OKX DEX allow users to enjoy the convenience of CeFi while also benefiting from the freedom of DeFi, effectively combining the advantages of both models.
Additionally, OKX continues to improve its CeDeFi integration strategy, aiming to provide more convenient and secure on-chain trading services, thereby attracting more new users into the blockchain ecosystem. Currently, the CeDeFi features are in open beta testing, and it is believed that in the near future, OKX users will enjoy even more convenient services.
CeDeFi represents a new direction for the development of the crypto industry:
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