According to online reports, the founder of Ethena Labs wrote on the X platform: The oracle attempts to identify two different scenarios. One is a temporary dislocation of secondary market prices, and the other is a permanent impairment of collateral. The latter has never happened on USDe. This phenomenon is much less likely for most assets, including USDe. Although DeFi money markets have been criticized for USDe anchoring the USDT, they do believe that this approach is reasonable because it avoids liquidation due to temporary price imbalances. Ethena provides on-demand reserve certificates to a small number of entities, some of which are also oracle providers, including Chaos Labs and Chainlink. During this week's market turmoil, Ethena's casting and redemption functions were not down. Major liquidity venues through chain locations such as Curve, Uniswap, Fluid experienced price misalignments, and more than $9 billion in on-demand stablecoin collateral was available for immediate redemption, but only a small fraction of the actual usage was available.