As reported by BitJie, Ethena's synthetic stablecoin USDe saw its total value locked (TVL) fall by 50% from $14.8 billion in October to $7.6 billion, despite a monthly on-chain trading volume exceeding $50 billion. The decline was primarily driven by the unwinding of leveraged rebalancing strategies on protocols like Aave, where users had staked USDe as collateral to borrow USDC for yield amplification. As USDe's annual percentage yield (APY) dropped to 5.1%—below Aave's 5.4% USDC borrowing cost—these arbitrage trades became unprofitable, accelerating the outflow. USDe maintains its peg through spot crypto collateral and short perpetual futures positions, leveraging interest rate differentials for yield.
Ethena's USDe Total Value Locked Drops 50% Amid Shrinking Yields
币界网Share
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.