I don’t understand why Ethena keeps trying to prove it’s not 'de-pegged.' The concept of de-pegging doesn’t even apply to it. It’s a delta-neutral hedge fund, fundamentally different from something like USDT in terms of stability. Also, ETHENA’s primary function is to help big players on exchanges hide wrapped Ethereum leverage, essentially an extension of the financial products exchanges used to offer. Even if Ethereum drops as low as $3,400, there’s no way it could face insolvency. That said, @agintender and I share the same understanding on this point. USDE should actually thank Binance for halting USDE deposits and withdrawals at the time (not praising BN, just saying ETHENA should be grateful for this fact). If, during that period, a large amount of locally 'de-pegged' USDE on BN had been sent to the chain for redemption—or if that period had lasted even slightly longer than what we experienced in this timeline—Ethena might have been forced to sell ETH and its corresponding short positions. This process would have had to go through exchanges, and combined with AAVE’s fixed 1:1 USDE pool, any shortfall could have triggered a chain reaction of lending protocol collapses on-chain. At that point, no exchange, lending protocol, or vault would have been able to stand apart and claim they were unaffected like they can today. Today’s luck is purely because Binance, whether intentionally or unintentionally, delayed the transmission of risk.