9.4K @YashasEdu Also funding pays 5.45% right now.
80% of days this year were positive which is a good environment for the basis trade.
@ethena is running it at 0.5% of backing anyway.
The high-yield engine is being retired, by choice so sUSDe's yield cannot come back from funding rates. It can only come from lending. IMO the ceiling resets to ~5-7% with default risk and sUSDe will likely be a credit product from this on.
NFA.
16.9K @tomwanhh Ethena sUSDe's risk profile has shifted meaningfully. Only 0.5% of the allocation is now sitting in basis trades, with the majority in stablecoin lending and T-Bills.
The expansion in yield sources makes sense given the compressed basis trade yields. It gives Ethena more flexibility to deliver yield to sUSDe holders without being structurally tied to perp funding rates.
The allocation resembles a lot with Spark Liquidity Layer:
• the portion of liquid stables that doesn't carry rev share with the issuer will likely get reallocated toward institutional lending. The $10M allocation to Coinbase Asset Management is the early signal.
• Longer term, DeFi lending becomes a strategic allocation to support USDe and white-label stablecoin growth rather than a pure yield play.
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177.3K @wublockchain12 According to Wu, DeFi organization YAM posted that, based on its calculations, among the underlying support assets totaling $4.4 billion for the stablecoin USDe, as much as $1.33 billion is involved in “self‑lending” (Lending against itself). YAM explained that its calculation rule is: “Estimated self‑lending size = total borrowing amount using USDe/sUSDe as collateral × Ethena’s share of liquidity provided in that market.” Using this proportional allocation method, the total borrowing amount collateralized by Ethena‑related assets is currently about $1.67 billion, of which the estimated amount attributable to Ethena self‑lending is about $1.33 billion, and the remaining approximately $336 million comes from other lenders. https://t.co/ovZ6IbX5G0
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2.2K @eldarcap 
8.8K @yieldsandmore By our calculations, $1.33B out of $4.4B of USDe's backing is lending against itself.
Here’s the rule we used:
Estimated self-lending = gross borrowing against USDe/sUSDe collateral × Ethena’s share of supplied liquidity in that market
So if a pool has $556M borrowed against USDe/sUSDe, but @ethena supplies 47.4% of the liquidity, we attribute ~$263M of that as Ethena-funded self-lending.
We’re not counting the full amount borrowed against USDe/sUSDe as “self-lending” where @ethena is not the only lender.
Using this pro-rata method, we get:
- Estimated Ethena self-lending: ~$1.33B
- Gross amount borrowed against Ethena assets: ~$1.67B
- Difference from pro-rata attribution: ~$336M
Sources of data:
AAVE: https://t.co/zeU9yvlXvY
Steakhouse USDtb: https://t.co/SpF5M5fcab
Steakhouse Prime: https://t.co/M63p1PVYV6
Kamino: https://t.co/opd9knbVcf
Juplend: https://t.co/RmdBd58Xz3
Backing: https://t.co/RrxbDYxemJ
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