Ethena’s USDe briefly drops to $0.65 on Binance before recovery

Ethena’s USDe, one of the largest synthetic dollar tokens in crypto, experienced a jarring price dislocation on Binance that saw it trade as low as $0.65 before snapping back toward its $1 peg. On DeFi platforms like Curve and Uniswap, the same token barely budged, with deviations under 0.3%. What actually happened During a broad market sell-off on October 10-11, 2025, USDe’s price on Binance cratered far below its intended dollar peg. The token hit roughly $0.65 on Binance and approximately $0.92 on Bybit, while major decentralized exchanges showed almost no stress at all. The culprit appears to have been a combination of factors unique to Binance. A thin internal orderbook distorted oracle pricing, and issues with deposits and withdrawals on the platform prevented arbitrageurs from doing what they normally do: buy cheap on one venue, redeem at par, and pocket the difference. Ethena Labs and multiple traders pointed to Binance’s operational setup as the root cause. The protocol’s own mint and redeem functions kept humming along throughout the episode, processing over $2 billion in redemptions within a 24-hour window. The numbers in context USDe’s total supply exceeded $12 billion ...