The passage of the GENIUS Act in the United States has set an unprecedented regulatory red line for the global stablecoin market. Overnight, the flow logic of funds underwent a fundamental change—compliance became the new standard, asset safety became the top priority, and stablecoins with real income capabilities are becoming a safe haven and new blue ocean for funds.
At this transformative juncture, the market value of a stablecoin project skyrocketed by over $2.7 billion in just a few weeks, jumping into the top three globally, with growth rates surpassing DAI and FDUSD, even temporarily outperforming USDT during the same period. Its explosive growth is not merely driven by short-term enthusiasm from favorable policies but is also the result of its product structure's 'triple balance' in profitability, liquidity, and compliance.
This success is not reliant on luck, but rather on a significant upgrade of the product structure.
While traditional stablecoins are still engaged in internal struggles around 'anchoring methods' and 'reserve transparency,' this new project has taken the lead by implementing a more forward-looking strategic mechanism, successfully establishing a path of 'real yield + efficient use + compliance-friendly.' In the context of tightening global regulation, this product logic has quickly proven to be a more viable growth model.
Its most talked-about recent update is a structural leverage feature called 'Liquid Leverage'—by depositing 50% USDe and 50% sUSDe in the Aave protocol, users can achieve automatic circular lending, which not only increases annualized yield but, more importantly, effectively releases liquidity. In less than a week since launching, over $1.5 billion has entered this strategy. To cope with the influx of funds, Aave has also raised the deposit limits for supported assets to $300 million and $350 million.
You may wonder why this mechanism can quickly ignite the market.
The key lies in the 'structural yield overlay' model: after executing a loop operation once, users will simultaneously receive triple returns—floating interest rates of sUSDe, lending yields of USDe in Aave, and additional reward incentives. Under current market conditions, the comprehensive annualized return rate of this strategy can reach around 50%, and funds can be withdrawn at any time without long-term locking, breaking the traditional high-yield strategy's contradiction of 'high yield = low liquidity.'
It is worth noting that the reward distribution is also extremely flexible: users can receive rewards after one week of investment, which are continuously released every 8 to 12 hours, greatly enhancing the strategy's attractiveness to short-cycle, high-frequency users. This optimization of the mechanism not only makes the strategy easier for ordinary users to adopt but also provides a feasible basis for larger institutional participants.
In the past, people were deterred by the staked versions of certain stablecoins, often due to long cooling periods and the 'frozen' feeling of asset allocation. Now, through a structural combination where half is liquid assets, this pain point has been precisely addressed: even if there are staked assets in the strategy, users still maintain at least 50% of immediate allocation space. This flexibility provides unprecedented operational freedom for professional traders and asset managers.
In terms of ecological layout, USDe is rapidly expanding its usage boundaries through a multi-chain strategy. It has already landed on several popular public chains such as TON and BNB Chain, and continuously connects to derivatives and liquidity protocols like Curve and Ethereal, constructing diverse usage scenarios. This not only reduces dependence on a single chain ecosystem but also expands the real usability of assets in DeFi scenarios.
At the same time, the penetration into traditional finance is quietly advancing—establishing partnerships with regulated custodian institutions to pave the way for future institutional capital absorption. This cross-border collaboration also signifies that this stablecoin can not only operate on-chain but also enter a broader compliant market.
As of now, the circulating market value of USDe has surpassed $9 billion. This is not just a numerical increase but represents the market's collective vote on its product logic, capital efficiency, and risk control structure. From an 'enhanced stablecoin,' it is gradually evolving into the next generation of infrastructure linking DeFi and TradFi.
In the context of increasingly clear regulations and more refined capital operations, the direction represented by USDe is becoming the mainstream path for stablecoin development—both stable and agile. As innovative products like Liquid Leverage continue to be launched, USDe's growth is entering a virtuous cycle driven by products. In the current accelerated reshuffling of the stablecoin sector, those products that are usable, profitable, and compliant are the true long-term value winners!
