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We all have seen the USDe chart late. It is up and right, now crossing $ 11.4 billion in supply. There are some major reasons behind this, which do not fully reconcile with 6-9% AP of Susde.
Looking at the bottom of the hood, the USDe market on pendles for September maturity is now in the circulating supply of USD, more than $ 3.4 billion in USDe.
Unlike Susde, Usde itself is not originally yielding-bearing, and its purpose is to represent the value of $ 1. On this pendal market, however, USDe liquidity promotes 70x SATS from Ethena’s mark, and on this market, YT buyers are giving the value of these SATS on a vested AP of ~ 14%, a vertical premium and benchmark yield was provided for an AP of 0% or benchmarks. Since the price of ENA has increased from $ 0.25 to $ 0.67 in early July today, the expected price of ENA distribution from SATS has increased with it.
It has flywheel-points farming. Spend on development with “numerals”, making it more attractive on pendles. UsDe supply increases, the top line for Athena accelerates the metrics. The increase in the top line leads the liquid markets to the price of the ENA, increasing the expected value of the ENA distribution through the digits. As the market enhances the assessment vested on the market points, the supply of USDE now increases to the congestion that now 14% -16% inherent yield, flywheel continues. More than $ 1 billion usde has been added to this market since last week.
Proceeding at one level- such as the market enhances the vested evaluation of the points, a certain yield on the USDE-type PTS is also lifted, making them more attractive to looping. As discussed last week, these devices have shown intensive use rates on Aave, which now exceeds $ 4 billion in PTS, borrowing capacity and LTVs are completely maximized. As the leverage in these devices is continuously dialed, the risks of a reluctance continue to increase.
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