Ethena Pay Launches Earn+ with Up to 12% Annualized Yield Target

ChainCatcher report: Ethena Pay has begun rolling out the Earn+ feature, an optional vault that claims to offer users a target annualized reward of up to 12% on USD balances. Initially available to Pro and VIP users, the feature is planned for expansion to all users in the coming days. This function transfers funds from the main payment balance to an external Upshift vault, where Steakhouse Financial executes a leveraged USDe strategy on Aave, targeting a higher yield than the app’s current maximum tiered reward of 6%. According to Ethena Pay’s documentation, the vault targets approximately 11x leverage on Aave v4 on Avalanche, bundling repeated borrowing and reinvestment into a one-click deposit. The specific mechanism involves depositing USDe as collateral, borrowing USDT, using the borrowed tokens to purchase more USDe, and repeating the cycle. Returns depend on whether USDe rewards can cover the cost of USDT borrowing. Ethena Pay states it provides only an interface and does not guarantee assets; users bear full responsibility for any losses in the vault, including potential partial or total loss of deposited funds. Ethena Pay notes that the simplified interface does not eliminate liquidation risk—positions may be liquidated if collateral falls below debt coverage levels, allowing liquidators to repay the debt and claim the collateral and rewards. The 12% target is not guaranteed; rates may be lowered, and Earn+ balances do not qualify for the main account’s Daily Boost. The product has no lock-up period, and deposits and withdrawals are fee-free. Withdrawals are processed to the main USD account within 24 hours but may be delayed and are not insured bank deposits. The vault’s initial total capacity is capped at $4.5 million, with individual limits of $50,000 for Pro users, $200,000 for VIP users, and $20,000 for Standard users.