Elliot Parker

COO @ethena_labs. Systematic Trader. Former @tradeparadigm @DeribitExchange

[Ethena @ethena]

Ethena and @coinbase have partnered to grow onchain finance and savings products for their 100m+ userbase, with the first growth initiative launching next week.

Alongside this partnership Coinbase Ventures have also made their first investment into Ethena on the open market.

[Haseeb ＞|＜ @hosseeb]

With all respect to Star, this story is candidly ridiculous.

Star is trying to claim that the root cause of 10/10 was Binance creating an Ethena yield campaign, causing USDe to get overleveraged from traders looping it on Binance, which eventually unwound because of a small price move.

The problems with this story:

1) The timing of this story doesn't line up. BTC bottomed a full 30 minutes before USDe price was affected on Binance. So USDe clearly can't have *caused* the liquidation cascade. This is clearly misplacing cause and effect.

2) USDe price diverged ONLY on Binance, it did not diverge on other venues. But the liquidation spiral was happening everywhere. So if the USDe "depeg" did not propagate across the market, it can't explain how *every single exchange* saw huge wipeouts. This is very much unlike Terra, which depegged everywhere and caused the same damage across every venue.
So maybe you could hedge Star's argument by saying "OK, maybe Ethena didn't *cause* 10/10, but it amplified it." But even as an amplifier, USDe fails the test because it didn't propagate cross-exchange. We know what a good explanation of a crash looks like—Terra, 3AC, FTX, all had global balance sheet effects that were felt everywhere. USDe did not do that, it was a Binance order book isolated event.

3) This begs the question: why is Star "revealing" this now, months later? Star does not produce any new evidence for this theory that people didn't already know and analyze to death. All of the order book data has been public for 4+ months and suddenly he claims this? This feels more like Star is picking a fight with CZ and using this simple story as a pretext to make it sound like CZ was in on it, or caused 10/10 through his own irresponsibility.

Look, the reality is, there's no simple story explaining 10/10 that survives scrutiny. I don't have one either. If there was a simple story that could explain 10/10, there would already be widespread agreement about what caused it, like the agreement around the 3AC or FTX crashes.

The best story to explain 10/10 is, to my mind:

* Trump spooked markets with tariff threats on a Friday evening
* This caused markets to sell off dramatically because crypto was the only thing to trade
* Flurry of activity caused Binance APIs to go down, causing huge price dislocations and preventing market makers from balancing inventory across exchanges. This caused huge liquidations that could not get filled, but liquidation engines keep firing regardless, and all this got amplified by ADLs initiating everywhere and breaking hedges and risk management
* This caused MMs to get wiped out, and they were unable to pick up the pieces—MMs need APIs to rebalance inventory, and without MMs, there were no buyers of last resort for many alts. Retail was not going to step in on a chaotic Friday evening to buy stuff
* Crypto liquidation mechanisms are not designed to be self-stabilizing the way that TradFi mechanisms are (circuit breakers, etc.), crypto liquidations are designed purely to minimize insolvency risk
* Altcoin prices are extremely path dependent, and we ended up in a bad path

That's my story. It's not a very satisfying one, but neither is this "Binance + Ethena did it" story. A better root cause explanation is "APIs went down at the worst possible time," but that doesn't really sound so dastardly.

Where simple stories do not suffice, unfortunately you have to choose a complicated one. And I think this complicated story is the best one for what actually happened on 10/10. Thankfully, the history of crypto is a long series of these "bad things happened, and later the market recovered."

In the long run, I'm not worried that 10/10 permanently broke the market. Just that prices are path-dependent, retail + MMs got hurt bad on 10/10, and will need time to recover.

[G | Ethena @gdog97_]

We want simple explanations and scapegoats but unfortunately this is just factually incorrect.

Data below shows clearly USDe had a price discrepancy on Binance orderbooks a full 30 minutes *after* BTC had bottomed from the crash.

Either you are wrong or this is the first "root cause" which happened after an event takes place.

You have a large audience who trusts what you say. Spend 5 minutes looking at the data before. Do better.

[Ethena @ethena]

USDe is now available on Korea's largest exchange with Upbit 🇰🇷

More details on reward programs to follow shortly

[G | Ethena @gdog97_]

While we share these suggestions privately with any partner we work with across both DeFi and CeFi, want to surface this publicly so there is zero doubt going forward on what we view as appropriate oracle design and risk management for USDe:

[Ethena @ethena]

USDe Proof of Reserves are typically provided on a weekly basis by 3rd party independent attestors including leading firms such as Chaos Labs, Chainlink, Llama Risk and Harris & Trotter.

On request from the community, we have provided a Proof of Reserves outside of the regular cadence following the market events in the last 24hrs which have been linked below this message.

Each of these independent 3rd parties have confirmed USDe remains overcollateralised by approximately ~$66m.

Maximum transparency.

[Ethena @ethena]

USDe on Binance has crossed $2b in 4 days since USDe Earn went live

[Tom Wan @tomwanhh]

USDe has hit $600M on Binance, just 1 day after announcing 12% APR.

This showcases the huge growth potential for USDe as it can tap into the distribution power of the world's leading exchange in both spot and perps and with over 280M users worldwide.

$1B on Binance inevitable.

[Ethena @ethena]

Nothing can stop me i'm all the way up

[Ethena @ethena]

We are excited to announce one of our most important integrations to date

Ethena has partnered with Binance to embed USDe across its entire platform of 280m+ users and $190b+ in assets including:

• USDe reward bearing collateral for futures and perpetuals trading
• Direct integration with Binance Earn
• USDe spot pairs

With more to come in the following weeks

Details below:

[Ethena @ethena]

Introducing MegaUSD: USDm, built with @megaeth on the Ethena Stablecoin-as-a-Service stack

MegaUSD will be backed by USDtb, which holds its reserves primarily in Blackrock BUIDL

USDm will operate as MegaETH's native stablecoin, underpinning major native applications

MegaEthena 🐇

[Ethena @ethena]

Have a great weekend

[G | Ethena @gdog97_]

Feel more confident that USDe will become a $50b+ asset in the next 3yrs than if you had asked me if we would get to $10b when we first launched.

To date we have minted & redeemed $18b+ in supply returning $450m+ in cash rewards to (s)USDe users without a single basis point of loss.

Hard to put into words how grateful we are for every single dollar that has helped to bootstrap us to this milestone.

Without you Ethena would be nothing; and I would be no one.

[Ethena @ethena]

everyone wants to know what we'd say if we didn't reach $10b supply

i guess we'll never know

[Ethena @ethena]

▓▓▓▓▓▓▓▓▓▓▓▓▓░ 90%

[Ethena @ethena]

This is our year tigers

[Ethena @ethena]

Introducing Liquid Leverage, a new Ethena integration on money markets enabled by partners, launching first on @aave 👻

Users can now deposit 50% sUSDe & 50% USDe into Aave and earn promotional rewards for USDe (currently ~12% APY), in addition to the normal USDe lending rate and sUSDe's native APY

[Ethena @ethena]

12% sUSDe APY with $7 billion USDe in circulation

The future is so bright