Benmo.eth: USDe Unpegging Incident Triggers Leveraged Trading, Binance Withdrawal Mechanism Unexpectedly Locks Arbitrage Path

According to Benmo.eth, in a post analyzing the USDe unpegging incident on October 11 from the perspective of lending and leveraged trading, he pointed out that Binance offered three high-leverage products during the event: VIP Loan, Savings & Loans, and leveraged trading, with the leveraged trading section being the most affected. Due to the real-time liquidation mechanism triggering a chain of liquidations, users of 5x leverage almost completely lost their principal, becoming the main battlefield of this unpegging incident.

The article analysis stated that the incident was sparked by macro news causing a market crash, which then triggered the liquidation of BTC and ETH leveraged positions, leading to a large amount of USDe being sold off; meanwhile, Binance's ETH hot wallet automatically stopped withdrawals when Gas fees were high, preventing USDe from being redeemed on-chain, blocking the arbitrage path, and causing the price to plummet to $0.66.

Benmo.eth pointed out that Binance's compensation announcement clearly identified the price anomaly between 5:36 and 6:16 (GMT+8) as non-market behavior and has initiated compensation. He suggested improving redemption efficiency in the future through on-site mint-redeem mechanisms or multi-signature limit adjustments to prevent similar incidents from happening again at the mechanism level.

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