EconomyRising Aave borrow rates threaten to turn Ethena’s USDe yield loops negative

LlamaRisk has proposed raising USDe borrowing costs across five Aave V3 markets, lifting the base variable rate from 5% to 6% while lowering Slope1. At Sept. 9 utilization levels, modeled borrower APRs would rise by 13 to 89 basis points, putting leveraged strategies that recycle borrowed USDe into sUSDe at risk of negative carry.

AaveEthenaUSDeBorrowing rates

CCryptoSlate★★☆☆☆2026-09-11 06:40Original