PANews reported on October 12th that the founder of Ethena Labs stated in a post on the X platform: "Oracles attempt to identify two distinct scenarios: a temporary price dislocation in the secondary market and a permanent impairment of collateral. The latter has never occurred with USDe and is much less likely for most assets, including USDe." While the DeFi currency market has been criticized for USDe's peg to USDT, it believes this practice is reasonable because it avoids liquidations caused by temporary price imbalances.

Ethena provides on-demand proof of reserves to a small number of entities, some of which are also oracle providers, including Chaos Labs and Chainlink. Ethena's minting and redemption functions did not go down during the market turmoil this week. Major liquidity venues through on-chain venues such as Curve, Uniswap, and Fluid experienced price dislocations. More than $9 billion of on-demand stablecoin collateral was available for immediate redemption, but actual usage was only a small portion.