Viewpoint: USDe is a financial certificate rather than a stablecoin; the misalignment in marketing narrative aims to secure more use cases.

On October 11, Conflux co-founder Forgiven shared his views on USDe by Ethena Labs, stating that USDe is essentially a financial certificate rather than a stablecoin. Some users also pointed out that USDe is a Hedge Fund Product, but with a built-in rebase mechanism, its NAV can always be pegged to 1 USD. The narrative that "USDe is a stablecoin" is the biggest misalignment in its marketing positioning, which is of course intentional, as it can attract more use cases, such as payments, USD trading pairs, or margin collateral. In reality, however, USDe is a radical financial product innovation. Vida, founder of Formula News, commented that the source of this large-scale liquidation may have been "USDe arbitrageurs' looped lending positions being force-liquidated," causing the collateral capacity of USDe as a unified account collateral to decline, which in turn triggered more positions of market makers using USDe as margin to be force-liquidated. Subsequently, Ethena released a proof of reserves in response to market doubts, stating that USDe still has about 66 million USD in excess collateral.