PANews reported on October 11th that around 5:30 AM today, Ethena's USDe stablecoin experienced a significant decoupling. The USDe/USDT price on Binance plummeted to as low as $0.65.

Ethena Labs stated that USDe experienced secondary market price fluctuations due to market volatility and a series of liquidations. Ethena stated that USDe minting and redemption operations are operating normally, and the asset remains overcollateralized. Due to liquidations, perpetual swaps are trading below spot prices, resulting in additional unrealized profit and loss (uPNL) on short positions, which are being converted into protocol revenue. USDe will be even more overcollateralized than yesterday.