Pegging a non-dollar asset to $1 will eventually cause issues.
Even USDT and USDC depegged, and they're not hedge fund coins.
The only foolproof fix is using USDE as the denominator (@gametheorizing is correct). USDE will never be risk-free collateral for trading USDT pairs.
My two cents: it's fine to use within the multi-asset collateral basket. @hosseeb makes a great point that the price should be set by multiple sources.
However, advertising USDE as a "safe stablecoin" is reckless when it's backed by hedge funds taking perpetuals risk.
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