Ethena’s synthetic dollar stablecoin USDe plummeted to $0.65 on Binance on October 10-11, 2025, while its price on DeFi platforms like Curve and Uniswap remained stable with deviations under 0.3%. This price dislocation resulted from a thin orderbook and deposit-withdrawal issues on Binance that prevented arbitrageurs from maintaining the peg. The protocol nevertheless processed over $2 billion in redemptions within 24 hours and published an emergency report showing it was overcollateralized by approximately $66 million. The broader market context also triggered approximately $19 billion in liquidations across the crypto market.
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