PANews October 29 news, according to CoinDesk report, Sentora Research states that after the big dump in the crypto market on October 11, nearly $1 billion DeFi positions involving Ethena stake of USDe (sUSDe) are at risk. The big dump caused a significant drop in interest rates in the DeFi market, and the returns on leveraged strategies such as sUSDe circular trading have shrunk. In Aave v3 core version, the borrowing interest rates for USDT/USDC are approximately 2.0% and 1.5% higher than the returns of sUSDe, respectively. Users leveraging stablecoins to go long on sUSDe are facing negative returns, and circular positions borrowing stablecoins to buy sUSDe are starting to incur losses. If this situation persists, approximately $1 billion in positions exposed to negative interest spreads in Aave v3 core version may be closed.
Negative interest rate spreads may force collateral liquidation or deleveraging, weakening liquidity in trading venues and triggering a chain reaction. Sentora reminds traders to pay attention to the interest rate spread between Aave's annualized yield and the yield of sUSDe, especially when it remains negative, as well as the utilization rates of USDT and USDC lending pools. Currently, an increasing number of cyclical positions are approaching liquidation, and in the future, traders should monitor the surge in utilization rates of USDT and USDC lending pools, which may raise borrowing costs and exacerbate market pressure when the interest rate spread is negative.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
MetaDAO community votes to approve the "Liquidate Ranger Finance" proposal
MetaDAO community voting approved the proposal to liquidate Ranger Finance, remove RNGR/USDC liquidity, and transfer the USDC reserve to MetaDAO, to be distributed proportionally to unlocked token holders. Additionally, the intellectual property of Futarchy governance will be returned to Glint House PTE. LTD. The snapshot will be taken on March 13.
GateNews3h ago
Solana's Largest DEX Aggregator » Jupiter Launches On-Chain Visa Card: Zero Fees for USDC Top-Ups, Aiming to Transform into a Decentralized New Bank
Solana Ecosystem Protocol Jupiter Launches Virtual Visa Card Jupiter Card, Allowing Users to Top Up with USDC Fee-Free and Exchange 1:1 USD. The card can be used at Visa-accepting merchants worldwide and offers two card level options. Jupiter has partnered with Noah with the goal of transforming into a decentralized new bank, providing more financial services and attracting a large user base. Its success remains to be seen before market validation.
動區BlockTempo5h ago
Maji deposited 100,000 USDC into HyperLiquid to increase the ETH long position, currently with a floating profit of over $200,000.
Foresight News reports that, according to Onchain Lens monitoring, Magji deposited 100,000 USDC into HyperLiquid to increase its ETH long position (25x leverage), currently with an unrealized profit of over $200,000.
GateNews16h ago
Apollo Crypto will manage the USDC-pegged tokenized strategy mEVUSD
Apollo Crypto announces the launch of the mEVUSD tokenized yield strategy product, in collaboration with Everstake and Midas, aiming to generate returns from idle stablecoins. Apollo will be responsible for managing the portfolio and reducing market risk through DeFi protocols.
GateNews18h ago
Oil prices surge, interest rate cut expectations cool down! Circle benefits as the target price breaks $100
U.S. stablecoin giant Circle recently surged nearly 8% in stock price, hitting a four-month high, due to soaring oil prices and a cooling of interest rate cut expectations. Mizuho Securities raised its target price to $100, while maintaining a "Neutral" rating, but became more optimistic about profit prospects. Analysts believe that if the Federal Reserve continues to keep interest rates high, Circle's revenue will benefit accordingly, but market competition and regulatory pressures should still be watched carefully.
区块客22h ago
On-chain EWY's largest long position hit the rebound of the Korean stock market, with a return on holdings reaching 115%
On the Hyperliquid platform, the largest long whale holding the iShares Korea ETF mapping contract cash: EWY successfully turned a profit, with unrealized gains reaching $310,000, a position size of $6.42 million, and an average price of $126. After a rebound, EWY's price this morning rose to $134, a 6% increase.
GateNews03-05 02:48
