From the perspective of lending and leveraged trading, the US de anchoring event First of all, I declare that I do not understand contracts, only borrowing. This short article was written because I saw a causal chain written by a friend on my social media account, which was written very well and I was inspired to respond. I hope everyone can rectify the mistakes and omissions. USDE will launch Binance in September and launch an APY12% marketing campaign from September 22nd to October 22nd. There are three ways to participate in this campaign: 1. vip loan， Can achieve a revolving loan ratio of 3.5 times; 2. Easy deposit and loan, can achieve a revolving loan ratio of 3.5 times; 3. Leveraged trading allows large investors to achieve 5 times leverage. First, let's talk about the conclusion of the impact of this anchor detachment incident on the three products: 1. VIP loan users, without residential areas. The funding side is not affected. However, on the morning of the 11th, due to Binance taking over the collateral assets, this part was priced as 0, but the liabilities were displayed, so the app displayed assets=liabilities - spot, mostly negative. According to feedback from group members, some people were panicked and quickly closed their positions, causing some losses. 2. Easy deposit and loan, small disaster areas. Before being compensated by Binance, if the principal loss is within 10%, it will vary according to different revolving loan multiples, and the loss will be calculated as USD liquidation negative premium+liquidation fee. Attention: The liquidation of Deposit and Loan Easy is not exacerbating the downward trend of USDE, but rather occurring between 0.92-0.97 after USDE rebounds (which can be directly calculated). Cross validation evidence: If your Deposit and Loan Easy has ETH, BTC, etc., you can calculate the liquidation price between the forced liquidation list and the compensation amount. Mine happens to have ETH liquidation price=3933, liquidation time is in the range of 5:45-6:00, avoiding the 5:30-5:45 depletion period, and it is not a quantity that can smash the market. 3. Leveraged trading, the hardest hit area. Leveraged trading is real-time clearing, so the forced leveling price has been consistently increasing from 0.99 to 0.66, which is also the main battlefield for this unanchoring. Before being compensated by Binance, the losses were huge, with a cycle of 2.5 times or more resulting in a loss of all principal, and 5 times the user's simple liquidation fee was 8% of the principal. ------------------------------------------------ Trigger and Start (This part is purely speculative) Trump published his empty talk about China's tariffs and other benefits. Hype hit billions of dollars, leading to a sharp drop in btc and eth ... Attention, here it is. Once ignited, it leads to leveraged trading products. Let me start with a premise. I suspect that some Whale users have put a lot of BTC and ETH in leveraged trading products, borrowed USDT, and then leveraged USD-USDT in a cycle, or shared margin in a unified account, resulting in contract liquidation and massive USD-USDT clearing in leveraged trading. Anyway, the fact is that at this moment, the sharp decline of BTC and ETH triggered the liquidation of his (possibly multiple or single) positions. The liquidation engine kept throwing out his USDE to repay USDT's debts, starting a downward vortex and hitting the 0.91 level, then the 0.82-0.8 level. The 0.82 level is the five fold cycle liquidation price, where a large number of whales accumulated. In an instant, the level burst, and the torrent flowed down to 0.66. ----------------------------------------------- Responsibility and determination (some of which are speculative) USDE has a real-time mint redeem mechanism, and USDE prices on the chain are relatively normal. The redeem cost of arbitrage bots is 0.1%, and any price difference greater than 0.1% will automatically trigger the start of arbitrage operations. The selling pressure of Bybit up to 0.92 was due to the obstruction of ETH withdrawals on Binance at that time. Smart arbitrageurs switched to USDE and used the BSC chain to smash the market on Bybit. However, Bybit has a mint redeem mechanism within the site, which triggered the arbitrage of these bots and suppressed the price from falling below 0.92. Afterwards, the arbitrage path and bot for this part had already been prepared by a certain team. At that time, they had planned for a possible blockage of Binance's ETH withdrawal and a replacement plan for USDE to move bricks. It was entirely possible to use the BSC chain and Bybit's on-site mint redeem mechanism to carry bricks for arbitrage, thereby suppressing the decline of Binance's USDE. Unfortunately, their team was sleeping at that time and was doomed Why is Binance's ETH withdrawal blocked? If you remember, Binance once paid a fee of 500 ETH for wallet sorting, which was ridiculed by the whole network at that time. I guess that after that incident, Binance's hot wallet withdrawal mechanism was restricted, which means that withdrawals would stop when the gas on the ETH chain exceeded a certain threshold. From the perspective of the exchange, this is reasonable because if there were no restrictions, paying a few hundred U per transaction could result in a loss of several hundred million US dollars in gas per day. But this time... This mechanism inadvertently locked the lifeline of USDE, which means that after 5:36, USDE in Binance cannot be mentioned for minting and redeeming on the chain. Even if these arbitrage bots switch to Bybit for arbitrage in a short period of time, they are still locked by Bybit's withdrawal limit, so the whole game can only watch USDE fall to 0.66. Therefore, in Binance's reward announcement, the time will be determined as the period from 05:36 to 06:16 (GMT+8 time) on October 11, 2025, which will be affected by decoupling and will receive compensation for the difference and liquidation costs. Binance believes that before 5:36 and after 6:16, Binance's withdrawals are normal and everything is a market behavior. ——————————————————————— Follow up and improvement The parameters of USDE's oracle are set to the lowest price, which has not been announced by Binance yet. My suggestion is to set a dual track approach, with a starting point of 0.85, which means the high barrier of the five times revolving loan cannot be easily broken (note that I have never recommended leveraged trading for revolving loans, as shown in the figure below); Secondly, it can be evaluated based on the specific situation of Ethena's assets, positions, and liabilities, and updated at any time; Binance has launched an on-site mint redeem mechanism, and arbitrage bots can effectively suppress price declines. Here is an extended answer to a question, why can it be suppressed after the website goes online? When the gas of the ETH chain is high, will it be blocked? To be honest, this is the most crucial question for future improvement. In fact, who can answer this question here? You don't need to look at my answer later, it means you have graduated in the field of lending. At first, I thought the same way, and even suggested that Binance directly request Ethena to open another channel, that is, Ethena's funds are stored in the Ceffu account under Binance, that is, there is a mechanism to switch to the Ceffu Ethena account in emergency situations to call funds for mint and redeem. The current mint redeem is conducted on the chain, and when the reserve pool is empty, funds are automatically transferred from Ceffu to the reserve pool. Previously, there were no problems, but now the volume on Binance is indeed too large. When there is a blockage on the chain, firstly, the arbitrage party cannot circulate it, and secondly, Binance's hot wallet cannot give hundreds of u of gas every time. However, after further communication with Binance and Ethena, an answer was obtained: 10m can be redeemed every 12 seconds (i.e. one Ethereum block). We can adjust the upper limit of this amount on our end through multi sig, so we can process a maximum of 200m. Currently, minting and redeeming tokens can only be done through smart contracts. Gas fees will not affect speed. We will estimate and pay sufficient gas to ensure that the transaction can be completed within one block, as we always tend to ensure smooth confirmation of casting/redemption. This part of the cost will be passed on to the users. This is feasible, that is, when USDE's Redeem product is on the Binance site, the Redeem handling fee+gas handling fee is automatically calculated, and users can voluntarily pay, bypassing the high gas limit of Binance's hot wallet! ———————————————————————— The final words As a heavy on chain and off chain lending user, October 11th was the most unusual day I experienced. Actually, it was also the most stressful time for me to work in the community. It involved a lot of money, and even though I called on everyone to use VIP loans, there were always group members who used leveraged trading (in the hardest hit areas) and easy to lend (in the smaller ones) due to factors such as position management. Yesterday, I coordinated and communicated with all parties to confirm, and fortunately, the BN big picture finally caught up. Outside of the profession, maintain humility and have more empathy and compassion. 2. At the same time, the perspectives of loan users and contract users are different. After a difficult day, as a loan user, I received almost full compensation on the 12th, so I express some gratitude. From the previous few comments, it seems that this has caused a bad impression on contract users, which was not the intention. We hope that Haihan and your rights will be protected as soon as possible. 3. Without the wisdom of complete enlightenment, all are cured after a long illness, all are experiences, all are experiences. Learn to use them, and next time... All of them are wealth. And I, who have been sick for a long time, became a doctor, so I hung a pot to help the world .. 4. Life requires a sense of dullness, and arbitrage is probably the same. Every day, high-intensity optimization is carried out in front of the computer. On October 11th, there was a sudden realization that perhaps in the future, we should discover more beauty in life and climb mountains more, instead of web3