AAVE USDe & sUSDe Circular Loan: I'm out～

According to the current market situation, after this week's sUSDe annualized update, it is expected to drop to 5% or even lower.

At that time, the price of USDe may decline, and during the unwinding process, the drop in USDe can only be directly absorbed. In contrast, sUSDe can still be anchored through the official 7-day redemption mechanism.

🤔 So, how to unwind more optimally?

1️⃣ Ample resources: Directly repay USDT/USDC debt → Sell USDe → Redeem sUSDe through Ethena’s official channel.

2️⃣ Limited resources: Prioritize using the Repay With Collateral feature, repay half of the debt with USDe → Use the remaining funds to pay off the other half of the debt → Finally redeem sUSDe through the official channel.

According to AI and official documentation, there are claims that Collateral does not incur additional fees, while others say it may incur a flash loan fee of 0.05% or 0.09%; actual testing compared to OKX DEX shows a loss of about 0.01%, but be sure to pay attention to slippage and MEV risks.

3️⃣ No available resources: First operate according to the method of 2️⃣ → Then follow the reverse steps of the initial circular loan, waiting in batches for the 7-day cycle to complete the sUSDe redemption.

When participating in circular loans, everyone's USDT:USDe ratio is roughly 10,000:9989, and now it is about 10,000:9992, meaning a loss of about 3 USDT for every 10,000 USDe.

However, as long as sUSDe is redeemed through the official channel, the overall situation remains profitable. According to methods 1️⃣ or 2️⃣, each $100,000 can yield a profit of about $120.

Note: The above is for informational sharing only and is not investment advice. Please conduct your own research!

DeFi Enthusiast: BitHappy