At 1:03 PM today, $USDe on Binance dropped to 0.92. In four minutes, it climbed back to 0.9987. Within that one hour, 36 million units were dumped—normally, it’s just a few hundred thousand per hour. There’s no pile of cash backing it. What keeps the price pegged to $1 is the arbitrage trades moving back and forth. If they can’t keep up, the price moves on its own. In 57 minutes, Binance will suspend deposits and withdrawals. Last October, it also crashed on this exchange—down to 0.65 that time. The on-chain pools didn’t budge back then. Even today, Aave doesn’t use its own price directly; it’s pegged to USDT instead. Both incidents happened on the same order book. The protocol didn’t break either time—the first to get hit were those using it as collateral. This is the 18th largest stablecoin in the market, but the pricing power is in someone else’s hands. In my collateral section, I only list USDT.