According to Mars Finance news, as reported by The Block, the total locked value (TVL) of Ethena's synthetic stablecoin USDe has fallen from 14.8 billion USD in October to the current 7.6 billion USD, a decline of over 50%. The sharp decrease is mainly due to the close positions of a large number of leveraged loop strategies emerging in DeFi protocols, particularly in lending markets like Aave. Currently, the yield of USDe (approximately 5.1%) has fallen below the borrowing cost of 5.4% for USDC on AAVE, leading some participants to close their positions. The report states that despite the decrease in TVL, the usage of USDe is on the rise, with on-chain transaction volume exceeding 50 billion USD last month, indicating that speculative positions are gradually unwinding.
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