Does on-chain US dollar yield ultimately still rely on Ethena USDe?
After Lido Earn supported USDe deposits on 6/30, the share of earnUSDe in the strategy reached 68.7%. It mainly runs on three chains—Ethereum, Mantle, and Plasma—using Aave to execute a looping borrow strategy.
According to on-chain address information, Lido Earn on Aave (Mantle) stakes sUSDe + MNT and borrows USDT0. The health factor of this position is close to 1.03—almost maxing out the loan.
On Aave (Plasma), Lido Earn stakes sUSDe + USDe and borrows USDT0. The health factor is around 1.07. It looks like part of the borrowed USDT0 may have been sent to syrupUSDT?
However, Lido Earn’s operations on Aave (Ethereum) are relatively more conservative. It also stakes sUSDe + USDe, but the borrowed asset is USDC, and the health factor is as high as 1.96.
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After a few years of going in circles in crypto, on-chain US dollar yield ultimately still relies quite heavily on USDe!
That said, it’s worth noting that Aave also supports USDe deposits on MegaETH and Ink, but Lido Earn does not choose to perform borrowing operations via these two chains.
As for why borrowing performance differs so much across the three chains, I guess it has to do with Mantle and Plasma’s high throughput and execution speed—so Lido Earn is willing to push the borrowing ratio to the max on those two chains.
But overall, for Lido Earn to charge a 10% performance fee plus a 1% platform fee, it’s not exactly cheap.
If you stake Aave yourself, at least you can get 5x Ethena airdrop points.
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● The above content does not constitute investment advice (NFA). Users should act according to their own risk tolerance. DYOR and participate cautiously in the investment market.
● All figures/images are sourced from Lido
#ethena #Lido #USDe #ENA $ENA