USDe Stable Despite Trade War Volatility

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USDe Stable Despite Trade War Volatility

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12:00am, Monday, February 3, 2025

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https://www.coindesk.com/markets/2025/02/03/usde-stable-despite-trade-war-volatility

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USDe differs from stablecoins such Circle's USDC because it's a synthetic stablecoin and not backed by fiat assets at a 1:1 ratio. The stablecoin maintains its $1 peg by collateralizing stablecoins and leveraging a hedged cash-and-carry trade, which involves taking futures positions with large open interest available to stabilize value.

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