{"id":13088,"date":"2026-09-11T06:55:23","date_gmt":"2026-09-11T06:55:23","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=13088"},"modified":"2026-09-11T06:55:23","modified_gmt":"2026-09-11T06:55:23","slug":"rising-aave-borrow-rates-threaten-to-flip-ethenas-usde-yield-loops-into-negative-carry","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=13088","title":{"rendered":"Rising Aave borrow rates threaten to flip Ethena’s USDe yield loops into negative carry"},"content":{"rendered":"

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LlamaRisk has proposed increasing borrowing costs for Ethena\u2019s USDe across five Aave V3 markets, tightening the economics for positions that borrow the stablecoin and recycle it into yield-bearing sUSDe.<\/p>\n

The Sept. 9 recommendation would increase USDe\u2019s base variable borrow rate from 5% to 6% on Core, Plasma, Monad, Mantle, and Avalanche. It would also reduce Slope1 by one percentage point on every deployment.<\/p>\n

At the utilization levels captured in the proposal, modeled borrower APRs would rise by 13 to 89 basis points across markets holding about $323.8 million of USDe debt against $1.18 billion supplied.<\/p>\n\n\n\n\n\n\n\n\n\n
Aave V3 market<\/th>\nUtilization<\/th>\nCurrent borrow APR<\/th>\nProposed borrow APR<\/th>\nIncrease<\/th>\n<\/tr>\n<\/thead>\n
Core<\/td>\n32.3%<\/td>\n5.72%<\/td>\n6.36%<\/td>\n64 bps<\/td>\n<\/tr>\n
Plasma<\/td>\n22.4%<\/td>\n5.79%<\/td>\n6.53%<\/td>\n74 bps<\/td>\n<\/tr>\n
Monad<\/td>\n17.2%<\/td>\n5.57%<\/td>\n6.38%<\/td>\n81 bps<\/td>\n<\/tr>\n
Mantle<\/td>\n9.0%<\/td>\n5.32%<\/td>\n6.21%<\/td>\n89 bps<\/td>\n<\/tr>\n
Avalanche<\/td>\n69.9%<\/td>\n6.75%<\/td>\n6.87%<\/td>\n13 bps<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\"Aave\"Aave
Infographic compares projected Aave USDe borrowing rates across Core, Plasma, Monad, Mantle and Avalanche after proposed base-rate and Slope1 changes.<\/figcaption><\/figure>\n

LlamaRisk framed the changes as recommendations and said they would be implemented through the Risk Steward process.<\/p>\n