Guy Young, founder of Ethena Labs, wrote on the X platform: "Oracles attempt to identify two distinct scenarios: temporary secondary market price dislocation and permanent collateral impairment. The latter has never occurred with USDe and is much less likely for most assets, including USDe." While the DeFi money market has been criticized for USDe's peg to USDT, it believes this practice is reasonable because it avoids liquidations caused by temporary price imbalances. Ethena provides on-demand reserve proofs 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 minting and redemption functions remained operational. Major liquidity venues on-chain platforms such as Curve, Uniswap, and Fluid experienced price dislocations, and over $9 billion in on-demand stablecoin collateral was immediately available for redemption, though only a small portion was actually used.