According to the largest exchange in the world, the “Together Initiative” would provide both user compensation and institutional support as it works to rebuild trust after the disruption. The announcement comes days after Binance experienced a high-profile glitch that caused Ethena Labs’ USDe and two tokens, BNSOL and WBETH, to briefly lose their pegs, triggering forced liquidations and drawing widespread criticism. Binance had earlier pledged to compensate affected users.

Binance plans compensation package for affected users

According to its statement, Binance promised to distribute up to $300 million in USDC stablecoin to traders who experienced forced liquidations during the most volatile hours of both days of the crash. Eligible users include those whose liquidation losses exceeded $50 and represented at least 30% of their net asset value at the time. Payouts, which the company said will begin in 24 hours, will be sent to individual spot accounts and will end in 96 hours.

In addition, Binance is also expected to establish a $100 million “Institutional Support Program” to offer low-interest loans to ecosystem partners and institutional clients hit hardest by the crash. The fund, designed to alleviate liquidity pressures and help firms resume trading operations, will be accessible to eligible VIP clients through their account managers.

The new initiative comes after Binance’s earlier October 11 announcement that it would fully compensate users affected by the depeg event, which occurred between 21:36 and 22:16 UTC on October 10. During that window, a glitch caused price distortions for USDe, BNSOL, and WBETH. Binance said it has since completed a review and promised to reimburse all impacted users who experienced forced liquidations across Futures and Margin trading from 00:00 on October 10 to 23:59 UTC on October 11.

Safeguards to prevent a repeat in place

The company also introduced several technical safeguards to prevent a repeat, including adding redemption prices into the price index weights of affected tokens, incorporating minimum price thresholds for USDe to improve stability, and conducting more frequent reviews of its risk parameters. Industry observers view Binance’s $400 million relief fund as a symbolic show of solidarity amid intensifying pressure and competition from other platforms.

Binance also said its relief package should not be confused with taking liability for users’ losses. “We expect scrutiny, fair or unfair,” Binance said, adding that its users “are always our first priority.” According to the leading exchange, “It is critical to rebuild industry confidence” after a period of volatility and scrutiny. “This stems from our belief in the long-term development of the industry and our commitment to Binance’s User Focus values,” the company said in the statement.

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Before the latest investment, M2 Capital announced an investment in the Sui Foundation. Ethena powers USDe, a crypto-native synthetic dollar, and sUSDe, its value-accruing form. To date, Ethena has surpassed $14 billion in TVL. Ethena’s structure combines the stability of a synthetic dollar with the performance potential of a reward-bearing asset. USDe is backed by crypto collateral and maintained through delta-neutral hedging.

UAE M2 Capital adds Ethena to its portfolio

According to reports, M2 Capital seeks to selectively integrate Ethena into its wealth management offering. Kim Wong, Managing Director and Head of Treasury at M2 Holdings, noted that the investment in Ethena offers sophisticated digital asset investors exclusive products in a regulated atmosphere for the MENA region.

Ethena’s Conor Ryder, Head of Research, mentioned that stablecoins are the single most important instrument in crypto. He adds that stablecoins providing a crypto-native synthetic dollar are not only the largest challenge in the space but the largest opportunity.

UAE central bank stablecoin regulations do approve of the use of synthetic stablecoins. Only AED fiat-backed stablecoins are allowed as legal tender in the UAE, with further support for fiat-backed stablecoins in virtual asset purchases.

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The Binance investment fund will expand its backing of Ethena Labs. The renewed backing will come in the form of adding ENA to its positions. The fund will support Ethena’s next growth phase by boosting USDe adoption across exchanges, both centralized and DEX.

Yzi Labs backs USDe, token to grow on BNB Chain

The USDe token was launched on Ethereum and is now expected to spread to BNB Chain. After surviving a bear market and volatility, Ethena Labs will also add new stablecoin assets. Unlike algorithm-derived USDe, USDtb will be backed by fiat. The new stablecoin launch follows the trend of new asset creation, compliant with the newly introduced Genius Act for the US markets.

‘We’re thrilled to deepen our partnership with YZi Labs, a long-standing and strategic backer. The holy grail of digital dollar distribution has always been embedding stable, yield-bearing assets directly into the core of the crypto economy. With USDe now scaling across exchanges, DeFi protocols, and global user bases, that vision is becoming a reality,’ Guy Young, co-founder of Ethena Labs, said.

Yzi Labs will also be expected to participate in Converge, a new institutional-grade settlement layer. The settlement layer will be built in partnership with BlackRock and Securitize, and is part of the BNB Chain’s drive to offer expanded tokenization. The additional support for Ethena comes at a time when Yzi Labs is looking to position Binance as the leader in the centralized and Web3 sector. The fund has backed more than 300 projects, with significant returns on its native tokens.

After the Yzi Labs announcement, ENA tokens traded within their usual range, at around $0.67. ENA has not seen outsized hype during the recent altcoin market. An additional inflow of ENA buying may signal long-term confidence. However, the move also creates significant insider holdings, potentially putting pressure on ENA or seeking exit liquidity.

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