What's a stablecoin depeg, and what's price divergence
Ethena did NOT depeg, agreed with @hosseeb but there's a shorter, clearer description imo:
The peg is not defined as the price on a single venue. If I create a centralized place where I buy/sell USDC for $.90 for a few hours does that mean “USDC is depegged?” Of course not.
The peg is defined as “if the issuer of the asset is willing to redeem the stablecoin for $1.00 at all times in an orderly manner.” This is the only real legal, social, & objective responsibility of the issuer. The proper description for what happened yesterday is that "Ethena did not depeg but USDe's price diverged from the actual peg on some secondary venues." Which happened with many non-pegged assets also fyi. Simple as that. Peg=the issuer only. Price=secondary source.
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