The USDE synthetic dollar depended on the binanic crypto exchange due to the inner problem of Oracle, not because of the basic collateral, the protocol of Ethen or the token itself, according to the Guy Young, founder of the Ether Labs, creator of the USA.
USDA forging and redemption acted “perfect” during Flash Crash Friday, he claimed; 2 billion dollars in USDE have been redeemed during 24 hours on the crypto stock market, including a curve, liquid and Uniswap, with minimal deviations of 30 base points (BPS) or less, young said.
The price of the USDA fell with about $ 1 to $ 0.65 on the binans during the collision because the exchange used Oracle data from her own order book, which had a thinner liquidity, not an external price, said Young. He added:
“The deviation from the serious price is isolated in one place, related to the Oracle Index on its own book, not the deepest set of liquidity, and faced the problems of deposits and withdrawal during the event, which did not allow the market manufacturers to close the loop.”
“No one would have been liquidated in any money market with plowing relating to the deepest basin of liquidity pool for the USDE globally,” he said.
The market decline on Friday launched the largest 24-hour liquidation event in the history of cryptocurrencies, creating a cascade that reduced $ 20 billion open positions, which could only be the top of the iceberg in terms of financial damage, some traders say.
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Merchants speculate if the USDE Depeg was a coordinated attack
Cryptocurrency elontrades guess That the USDA devizi event at Binance was a coordinated attack that exploited the “United Account” feature on Binance, which allows users to become property as USDE as a collateral.
This feature uses Binance’s information about Orderbook’s book instead of external prices Oracles, described by Elontrades as a “main vulnerability” and a problem with which the exchange has announced that it will be repaired by October 14 by turning data from external plowing.
The attackers used this time window, throwing up to $ 90 million to the USDA on Binance, lowering the price at $ 0.65 to an exchange and lit a torrent of liquidation on the platform up to one billion dollars.
At the same time, the attackers opened short positions to Bitcoin (BTC) and ETER (ETH) on a hyperlical eternal future decentralized exchange, a few minutes before the tariff announcement on Friday from US President Donald Trump sent traders to complete panic and cryptocurrency markets.
The attackers then used about $ 192 million in profits from their short positions, as the binance infections expanded the cryptocurrency markets, liquidating about $ 20 billion due to a $ 100 million position, Elontrades speculated.
The liquidation event was encouraged by Kris Marszalek, CEO of Crypto.com Exchange, to invite an investigation into exchanges that experienced great losses.
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