“DEPEG-GATE” AND THE SEMANTICS OF STABLECOIN STABILITY

Summary from the TLDR Crypto newsletter

“Depeg” has become an overused, misleading label for any price dislocation, even when the stablecoin issuer isn't at fault. We should recognize the nuances between local depegs (venue-level liquidity or routing issues like USDe's recent event), widespread redemption stress (temporary withdrawal uncertainty like USDC during SVB), and collateral loss (true issuer failure like Terra/Luna). Most “depegs” reflect market dysfunction, not issuer collapse, and using the term loosely conflates unrelated issues, causing unnecessary reputational damage.