Original Author: @shaundadevens

Preface

As decentralized finance (DeFi) continues to develop, various innovative yield strategies emerge. Recently, Blockworks analyst Shaunda Devens (@shaundadevens) detailed how Ethena's USDe stablecoin supply surged by $3.7 billion in just 20 days, driven by the PT-USDe rotation strategy launched by Pendle and Aave. This strategy splits principal and yield tokens, combining lending leverage to greatly amplify yield potential. Meanwhile, its potential risks cannot be ignored. This article will organize the core mechanism, yield composition, and risk considerations based on Devens' analysis.

I. Supply Surge and Mechanism Overview

Shaunda Devens' tweet on August 6, 2025, pointed out that Ethena's USDe supply grew by $3.7 billion in 20 days, mainly driven by the Pendle and Aave-based PT-USDe rotation strategy. Currently, approximately $4.3 billion (60% of total USDe) is locked in Pendle, with another $3 billion deposited in Aave.

USDe is a decentralized stablecoin that maintains its dollar peg through a directionless hedging algorithm using ETH perpetual contracts, while generating yield through spot staking and perpetual contract funding rates. However, this yield is extremely dependent on funding rates, closely related to the premium or discount of perpetual contract prices relative to ETH spot prices.

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By covering USDe and its derivatives to be equivalent to USDT, Aave has facilitated aggressive leverage rotation. However, Devens emphasizes that both rotators and protocols need to bear corresponding risks. Asset supply quotas are frequently filled quickly, especially as USDC supply increasingly depends on PT-USDe collateral. In this structure, USDC is similar to a senior priority share, with holders enjoying enhanced rates due to high utilization, and risks only exposed when bad debts occur. V. Ecological Impact and Outlook The extensibility of future strategies depends on whether Aave continues to increase collateral quotas. The risk team has proposed multiple times to increase quotas, with a recent proposal of $1.1 billion. However, policy restrictions limit growth to no more than twice the previous amount and require a three-day interval. Ecosystem participants' benefits are clear: Pendle charges a 5% fee from YT, Aave receives a 10% reserve from USDC lending interest, and Ethena plans to extract about 10% after enabling the fee switch. Devens concludes that Aave provides high profitability potential for Pendle PT-USDe leverage rotation strategies through USDT-pegged coverage with a discount cap. However, the leverage also intensifies systemic risks among Aave, Pendle, and Ethena, requiring continuous attention. Click to learn about BlockBeats job openings Welcome to join BlockBeats official community: Telegram Subscription Group: https://t.me/theblockbeats Telegram Discussion Group: https://t.me/BlockBeats_App Official Twitter Account: https://twitter.com/BlockBeatsAsia