Ethena USDe (USDe)

if @ethena keeps minting ~$100m USDm per day, we should hit the next 3 kpis as early as next week

incredible tech https://t.co/512A4wlg0T

Megaavethena is the economic engine of MegaETH. Here's how it works.

Users deposit USDE, borrow USDM, swap for USDE, borrow more USDM, etc. Standard stablecoin looping to farm yield.

For Ethena, Mega is the best place for stablecoin looping, since Ethena operates USDE and USDM. Ethena wants to continue to scale looping on Mega, because both sides of the loop benefit them.

On Mega's Aave, USDE has a special yield pass-through that allows it to earn the same yield as sUSDe. This is only on Mega's Aave, not on other chains.

So USDE on Mega's Aave earns an intrinsic 3% yield, just like sUSDe. It also earns an additional 3% from Ethena, which users claim on Merkl. So ~6% total yield. Then users borrow USDM, which is itself incentivized so that borrow rates are low.

Because of these incentives, Mega is currently the most profitable place to loop USDE. Which is why the 100M USDE cap is currently filled. According to Ethena, they want to walk the cap up to 500M.

This is megaavethena. It is going to hugely benef