I just came across Ethena Pay’s new Earn+ feature offering up to 12% APY. My first reaction wasn’t “Wow,” but “Where is this money coming from?” I’ve been following Ethena Pay closely. In just one month, it’s reached 50 countries, over 1,400 active users, USDe balances exceeding $8 million, and weekly spending above $750,000. Originally, depositing funds already earned up to 6% APY—no lock-up, automatically calculated. Now Earn+ claims it can reach 12%—double the rate. So I dug into the underlying mechanics. // I broke down the底层 (underlying structure): Earn+ connects to an external on-chain vault managed by Upshift and Steakhouse, running on Aave v4 on Avalanche. In simple terms, it’s a circular arbitrage strategy: deposit USDe as collateral, borrow USDT, buy more USDe, deposit again, borrow again—repeating the cycle. The target leverage is roughly 11x. The yield comes from the interest rate differential between USDe and USDT: USDe earns a higher yield than the cost of borrowing USDT. Multiply that spread by 11x leverage, and you get the 12% you see. What I find interesting about this product isn’t the yield itself— It’s that it packages a strategy even seasoned DeFi users would need time to manage into a one-click operation. You don’t need to open positions on Aave yourself. You don’t need to manage circular leverage or monitor rate changes to rebalance. You just click. No lock-up. You can withdraw anytime—funds arrive in your USD account within 24 hours. Ethena Pay charges no deposit or withdrawal fees. I believe this experience wasn’t designed for DeFi natives. It was designed for people who don’t even know what Aave is. — But there are a few things I need to clarify: The underlying strategy uses 11x leverage. No matter how simple the interface looks, that fact doesn’t change. If the interest rate spread between USDe and USDT narrows—or reverses—losses are amplified too. This vault isn’t operated by Ethena Pay. It’s managed by a third party. Ethena Pay only provides the interface; it doesn’t custody assets or guarantee returns. If you lose money, they aren’t responsible. There are also capacity limits: Standard users: max $20,000 Pro users: max $50,000 VIP users: max $200,000 The total vault cap is initially $4.5 million. I noticed this limit is relatively small—suggesting the team is intentionally controlling risk exposure. This product is only available to Ethena Pay users; you won’t find the same entry point directly on-chain. // How do I interpret this? Ethena Pay isn’t just building a wallet. I think it’s trying to become a crypto-native bank. Deposit money and earn base interest. Want more? Earn+ offers an advanced product. Spend daily and get cashback. All DeFi strategies are hidden behind the scenes—you only see a number and a button. I previously wrote about the dual-track design of USDe and USDTb. Ethena Pay is essentially wrapping the crypto-native USDe line into a product designed for everyday users. Whether this path will succeed is still too early to tell. But DeFi’s yield potential is real—the problem has always been complexity and high barriers to entry. Whoever can remove that layer will reach a much larger audience. Earn+ is Ethena Pay’s first step in this direction. I’ll keep following it. For full product details and risks, refer to Ethena Pay’s official documentation. On-chain strategies carry risk—leverage amplifies both gains and losses. DYOR. @ethena @EthenaPay