This flash crash started with a policy-driven fall, leading to the normal liquidation of some ETH. Coupled with the high leverage of the USDe subsidy activity circular loan in Cex, and the ability to use USDe/BNSOL/WBETH to offset contract Margin, the Hot Wallet gas ran out, causing a withdrawal delay of 1 hour. As a result, a small-scale de-pegging ultimately triggered a chain reaction of large Positions being liquidated, while many altcoins relying solely on market makers for Liquidity dropped to nearly zero after the withdrawal.

Fortunately, the USDe at the center of the storm is safe and sound. After all, @ethena_labs does not support using USDe itself as collateral. Now, USDe is not only over-collateralized by 66 million USD, but the protocol's profits have also increased.

This time, ethena withstood the test, and the lending users on the chain were not affected. Additionally, the market has just cleared the leverage, making it the perfect window period to look for the next project.

Although it's a pity that I couldn't buy the discounted USDe today, I still set aside some U to store in the @Terminal_fi's pre-storage vault ( )

Why is there still a deposit in a situation where liquidity is tight? On one hand, there is currently only a deposit limit of just over 1M, and I’m afraid that if I wait too long, I won't be able to deposit it. On the other hand, the business does have certain innovations. The Terminal is designed specifically for stablecoins like sUSDe, which benefit from a composite structure and continuously appreciate over time, to protect profits after being added to the LP.

USDe itself does not carry profits; it can only be minted into sUSDe to generate profits. However, once sUSDe carries profits, people are reluctant to use it for LP participation. After all, the AMM formula x*y=z ensures that a portion of the profits you deposit each year will be worn down.

The pools that exist in Terminal can separate the profit layer of composite stablecoins from liquidity, just like how Pendle separates potential profits from the value of the tokens themselves. The design of Terminal is not limited to sUSDe; it can serve more similar composite tokens in the future, such as JLP, which recently collaborated with Ethena to replace all USDC, as well as many LST assets. Therefore, Etherfi has also recognized the potential for collaborative incentives.

If the experiment is successful on ethena, and the business is stable and profitable, there is actually a lot of room for gradual expansion in the future. Many people have somewhat underestimated this project because there has been no fundraising or marketing efforts.