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Did Ethena Really Depeg? I’ve seen a lot of chatter about the Ethena depeg during the market mayhem this weekend. The story is that USDe briefly depegged to ~68c before recovering. Here’s the Binance chart everyone is quoting: But digging into the data and talking to a bunch of folks over last couple days, it's now clear this story is not correct. USDe did *not* depeg. First thing to understand about USDe: its most liquid venue is actually not on exchanges, it’s on Curve. There’s hundreds of millions of dollars of standing liquidity on Curve, while only tens of millions on any given exchange, including Binance. So if you just look at that chart of USDe on Binance, it looks like USDe depegged. But if you superimpose the other liquid venues for USDe, you get a different picture: We see here that while USDe wicked down on every CEX, it did not do so uniformly. Bybit briefly hit $0.95 then quickly recovered, yet Binance depegged a crazy amount and took forever to regain the peg. Curve meanwhile dipped a mere 0.3%. What explains this difference? Remember, every single exchange was under immense load on that day—it was the single largest liquidation event in crypto history. Binance was extremely unstable during this period, causing MMs to be unable to shift inventory because APIs were failing and withdrawals and deposits were bricked. Nobody was able to step in and arb. It’s like a fire broke out on Binance, but all of the roads were blocked and firefighters couldn’t make their way in. This caused a wildfire to break out on Binance, but pretty much everywhere else, that fire was immediately put out by bridging liquidity. (As Guy shows in his post, USDC also depegged a few cents temporarily on Binance due to the same general instability issues—liquidity just couldn’t get ferried in, but this wasn’t a depeg event for USDC either.) So OK. Unsurprising that while there’s API instability, prices on exchanges are wildly different because nobody can get inventory in. But why did it decline so much deeper on Binance than on Bybit? The answer is twofold—first, Binance did not have any primary dealer relationship with Ethena to be able to directly mint and redeem on-platform (Bybit and other exchanges have this integrated) which allows MMs to stay on-platform and still perform peg arbitrage. This is huge, as otherwise an MM has to take their money *out* of Binance, go do the Ethena peg arb, and then bring back their inventory. Nobody was doing that in a moment of crisis when APIs were failing (plus so many other coins were cratering). Second, Binance had their oracle poorly implemented and started liquidating positions they shouldn’t have—good liquidation mechanisms don’t trigger on flash crashes. If you are not the primary venue for an asset (which Binance is not for USDe) then you should look at the price on the primary venue. If you are only looking at your own order book, you will liquidate too aggressively. This caused Binance to start liquidating USDe as though it was worth $0.80 or whatever, which caused a cascade. This is a big part of the reason why Binance is refunding people who were liquidated on USDe (other exchanges AFAIK are not doing so)—they messed up by only looking at their own price instead of the true external price. So this was a Binance-specific flash crash, which better market structure could’ve prevented. USDe on its primary venue, Curve, was actually trading at a tight peg the entire day. This is really different from what you’d describe as a depeg. If you remember USDC in 2023 during the banking crisis, this is what an actual depeg looks like: During the banking crisis, USDC traded down on every single venue. There was *no* place where you could buy USDC for $1. Redemptions were literally halted, so $0.87 was the *true* price. That’s what a depeg means. This instead was a Binance-specific dislocation. It’s a big lesson for market infra, but critical to understand the nuance here if you are trying to draw inferences about USDe’s mechanism from this weekend. USDe was fully collateralized and worth $1 on its primary venue through the entire episode and actually increased its backing collateral over the weekend due to the price action. That said, this kind of market instability is ultimately good because it exposes lessons for the whole industry. Guy’s post below lays out how any exchange, including Binance, can avoid this kind of issue in the future. TL;DR: USDe did not depeg, Binance did.

Hypurr NFTs have been deployed on the HyperEVM. Participants had the opportunity to opt in to receive a Hypurr NFT after the HyperEVM went live as part of the Genesis Event in November 2024. The HyperEVM launched in February 2025 as the general programmability interface to the Hyperliquid L1. The HyperEVM is not a standalone EVM. Rather, it allows developers to trustlessly tap into the liquidity on HyperCore. Read precompiles allow smart contracts on the HyperEVM to read L1 state, and the CoreWriter contract allows HyperEVM smart contracts to send actions on HyperCore. This two-way communication between Core and EVM secured by the same HyperBFT consensus protocol unlocks powerful new primitives. Many novel applications have been built on the HyperEVM exploring these possibilities, including LSTs, lending, and vault tokenization protocols. The goal of the Hypurr NFT collection was to share a memento with those who believed in and contributed early on to Hyperliquid’s growth. Each NFT is unique and captures the different moods, hobbies, tastes, and quirks of the Hyperliquid community, as depicted by Hypurr. There are a total of 4,600 NFTs in the collection. 4,313 NFTs went to Genesis Event participants, 144 went to the Hyper Foundation, and 143 went to core contributors, including Hyperliquid Labs, NFT artists, and other contributors. Ownership and use of Hypurr NFTs are subject to the Hypurr NFT Terms and License available here: hyperfoundation.org/nftTerms. Participants who opted in to receive a Hypurr NFT as part of the Genesis Event were screened according to the Foundation's risk-based program. In addition, clustering analysis was conducted to protect against sybil behavior and cap the total number of NFTs received by any given user. Contract address: 0x9125E2d6827a00B0F8330D6ef7BEF07730Bac685. To be clear: No action is required. You do not need to mint. The NFT collection has already been distributed. As always, beware of scams and impersonations.

Hyperliquid will house most of if not all of finance. Stablecoins and related infra would be the backbone of supporting the whole ecosystem. Really excited to be building around this. Mainnet soon!! Hyperliquid