If you think USDE won't collapse, then why do you think USDT will? To discuss whether 100% or over-collateralization is necessary, we need to distinguish between decoupling due to insufficient secondary market liquidity and decoupling due to insufficient reserves (collateral). These are fundamentally different. USDE in October 11th was the former; USDT in Luna is the latter. The key to the former is market confidence – if someone believes you're capable and have the funds (not necessarily actual funds), they will provide liquidity. The key to the latter is having actual funds, but many people don't realize that you can't actually use them. Like USDT, once they're actually used, confidence dissipates. Tether's financial report seems to be deconstructing the latter, but it's actually discussing the former. Is 80% of US Treasury bonds as reserves enough? It's both enough and not enough. Mathematically, it's not enough in the current market environment, but from a market game/secondary market maker perspective, it is. For Tether, the money on the balance sheet is mine, the money from market makers is mine, and the money from the exchange is mine. It's just that betting on the direction like this is a bit puzzling for a money-printing machine that can make money effortlessly.