OKX CEO Blames Binance USDe Collateral Loop for October 10 Crash
- —Star Xu said Binance's USDe collateral loop amplified trader leverage
- —He called Ethena's USDe a "tokenized hedge fund", not a risk-free asset
- —Delta-neutral strategy behind USDe does not remove price risk, Xu said
- —The loop: USDe collateral, USDT loan, more USDe, repeat
Why it matters: The accusations against the largest exchange could intensify scrutiny of Binance and of stablecoin collateral rules.
Source: Koin Bülteni