Star Xu: How does USDe's leveraged looping trigger the '1011' liquidation chain? OKX founder and CEO Star Xu @star_okx questioned Binance's promotion of USDe as a stablecoin during the New Era Finance Podcast @new_era_finance. He argued that USDe, issued by Ethena, is essentially a 'tokenized hedge fund.' Even though it employs a Delta-neutral strategy, this doesn't guarantee zero risk or low risk. He further pointed out that Binance allows users to use USDe as collateral to borrow USDT, then swap it back into USDe, repeating the cycle to amplify returns—while simultaneously magnifying leverage and risk exposure. In his view, this setup was a key factor behind the '1011' liquidation chain and represents a significant risk management failure. Source: New Era Finance Podcast