Topic: What do you think about stablecoin USDE? (Read 96 times)

That is only the price on a single exchange, which from the screenshot looks like Bybit. There was a huge dump around that time on Bybit and the price depegged for a few seconds. It did not affect the price on other exchanges because CoinMarketCap shows that the token has remained very close to $1.00 since it was first launched.

USDe is not an algorithmic stablecoin. It is a synthetic dollar backed by volatile assets and the peg is maintained through perpetual futures positions. There are similarities to algorithmic stablecoins, but the strategy used by Ethena results in a more stable peg.

The Galactic Milieu has been researching and testing the concept of stablecoins for a long time now.

What the term seems typically to mean is a coin that, like fiat in general, loses value over time, presumably to encourage spending of it and discourage saving of it.

Thus the Milieu's initial approach to such an asset was to attempt to develop a commodity that, just like fiat, would depreciate, but do so relatively steadily.

If you take a look at the historical table of values of DEUterium you can see how we have been doing over more than a decade now.

In theory there were two major Corps, General Mining Corp (GMC) and General Retirement Funds (GRF) stockpiling DEUterium, but for technical reasons historically it soon became necessary for only one of those two Corps to accept (and pay for using the shown rates) shipments of the actual in-game commodity known as DEUterium to their depots at any one time, and after some time it also became necessary for each to use only one depot to accept such deliveries rather than accepting deliveries at any of their planets.

Because both GMC and GRF stockpile the actual in-game commodity with the intent that someday tokens representing it could be deployed as in effect "yet another in-game currency", backed by the actual commodity and acting as tokens of ownership of fixed quantities of the commodity to be delivered either by GMC or by GRF at a cost in DEUterium itself to account for the DEUterium burned as fuel by the starships delivering the commodity to the customer submitting the tokens for redemption, there were two tokens created on the HORIZON platform, GMCDEU and GRFDEU, the distinction between them intended to be ultimately of real interest only to customers seeking to redeem the tokens for actual commodity DEUterium within the game, since they represent two different depots delivery would come from thus potentially two different amounts of fuel required to deliver it depending upon the destination to which the customer desired it to be delivered.

Thus far neither of those tokens have actually been deployed; for well over a decade now mostly GMC but from time to time GRF has been accepting shipments of actual commodity DEUterium within the game and paying at the shown rates.

Do please compare the shown rates against other tables and plots found at http://galaxies.mygamesonline.org/digitalisassets.html and let me know how well you think the Milieu has been doing so far at achieving "stability" of DEUterium, keeping in mind that by "stable" we mean "going forever downward in value" just like fiat.

Also of course some fiats do vary against one-another so possibly it might work better to compare it to an average of fiats rather than any specific fiat? Do please let me know if you find that to be so too...


-MarkM-

I think that temporary depeg mainly caused by low trading volume, the 24h turnover isn't as big as USDC/USDT and it pegs 1:1 in no time. but I can definitely see why people might think there's some risk.

the risk assesment in this page https://docs.ethena.fi/solution-overview/risks is actually a pretty interesting read to know whether USDe is reliable or not. basically USDe is just a delta neutral synthetic dollar much like UST I guess.
so yeah, it may be a concern in the bearish market (though knowing how delta neutral stables work, it shouldn't because they always have short position on perpetual contract to retain delta of 0), i'm no expert at this field tho, but I prefer the old classic stablecoin where value derived from its backing like gold, usd, and so on, rather than algorithmic stables.

I believe if we had a very big market crash overnight, that stablecoin could have completely obliterated. Honestly, I don't know any algorithmic stablecoin that did not decouple at one point last time round when the market bled red.
Despite the bad history, I still wonder what makes people continue using such "unstablecoins"

That is correct.

It is an algorithmic stablecoin just like UST and many stablecoins that depeg in the past

Having USD is the best among them which is not pegged but United States dollars itself. But fiat backed stablecoins have shown to be the best among fiat pegged stable coins.

This is one thing we must know about this tied stablecoins, usually it's very risky to hold such stable coin which we don't really know about them or even hardly trust theme. Some times now I have never sold any of my asset to tied stablecoin apart from USD itself, because any other can decouple or depegged since after from Luna experience I have learnt not to trust any other tied stablecoin apart from directly dealing with USD.

It's a stablecoin from Ethena, right?

I haven't looked deeper into the project, so I don't have any thoughts on $USDE at this time. Considering the crash that occurred in $LUNA, it seems like the team from Ethena does not have the same system as them. As I said before, I haven't looked too deeply into this project, so I can't say too much, I'm afraid I might convey wrong information.

It is an algorithmic stablecoin. What I noticed from UST which wasa stablecoin that old Luna (now known as Lunc) developers created was that it fall during bear market during the collapse of old Luna. Everything was good until the bear market came in 2022 that made the coin to depeg from United States dollars.

There was a mild bear market since yesterday that plummet bitcoin from $108400 to $93880. I decided to check the USDE price today and I saw this:





Can you see how this said to be stablecoin plummet. It has almost increased back to $1 but what if it is a massive bear market.