Ethena Labs' founder has defended the decision to peg USDDe to USDT, stating it is a reasonable measure to prevent liquidations due to temporary price imbalances. Despite recent market turmoil, Ethena's minting and redemption functions remained operational, with over $9 billion in stablecoin collateral available for redemption. The founder emphasized that while price dislocations occurred on platforms like Curve and Uniswap, the collateral backing USDDe has not faced permanent impairment. Ethena also provides proof of reserves to select entities, including oracle providers Chaos Labs and Chainlink.
Ethena Labs Defends USDDe's USDT Peg Amid Market Volatility
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