Insight: USDe is a financial instrument rather than a stablecoin, and its marketing narrative's dissonance is intended to target use cases.

BlockBeats News, October 11th, Forgiven, a co-founder of Conflux, expressed his views on USDe, a project under 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 with a built-in rebase mechanism, where the Net Asset Value (NAV) can always be anchored to 1 US dollar. The claim that "USDe is a stablecoin" is the biggest misalignment in its marketing narrative, which is deliberate in order to attract more use cases, such as payments, USD trading pairs, and margin trading. However, the reality is that USDe is a form of aggressive financial product innovation.

Founder of Today's Formula News, Vida, stated that the root cause of today's large-scale liquidation may be the "forced liquidation of USDe arbitrageurs' loop positions," which led to a decrease in the collateral capacity of USDe as a unified account collateral, causing more liquidation of positions of market makers who were using USDe as collateral. Subsequently, Ethena released a reserve proof in response to market doubts, stating that USDe still has approximately $66 million in excess collateral.