The USDe + sUSDe subsidies from Aave & Ethena have been renewed～
According to the official calculations, the APR for this five-cycle round is still 33%. Is everyone still participating?
In the last round of circular lending, most people didn't make much money, and the core reason might be that USDC had deposit and loan subsidies on Binance, causing the price of USDC and the interest rate of USDT to fluctuate too much, leading to circular lending being countered for a couple of weeks.
The worst part is that many friends were caught in a squeeze when they withdrew, not only losing their negligible profits but also incurring losses.
👇 Among them, the experiences of two friends are worth noting:
1️⃣ One friend swapped USDT for USDC on Aave, and due to the default large slippage, they didn't enable the anti-squeeze feature during the swap, resulting in a loss of 1500U.
2️⃣ Another friend, when exchanging USDe back to USDT, misinterpreted the price impact as slippage, leading to a squeeze of 1800U.
I feel for the two friends in the community who had their funds tied up for nearly 3 weeks and ended up losing money.
However, coincidentally, the news from Aave was announced last night, and then the price of Pendle started to decline. Could it be that the PT circular lending business was taken away? 🤔
Note: The above is for information sharing only and is not investment advice. Please do your own research!
DeFi Enthusiast: BitHappy
🤔 The community members are starting to discuss the opportunities of USDe/sUSDe again～
Besides the subsidized circular loans and PT circular loans, the most reliable method remains risk-free arbitrage.
For example, a community member mentioned: borrow USDe on Aave, exchange it for sUSDe via 1Inch, and then perform Unstake to unlock. Based on the current situation, the annualized yield can reach up to 20% (if the timing is right, the APY can be even higher).
The core logic of this approach is to utilize the price of sUSDe on-chain or on exchanges and the exchange rate difference between its official Unstake unlock price for arbitrage.
According to the practical experiences of several big players in the community, if the timing is accurately grasped, the profit from a single operation can be quite substantial, with operational capacity potentially reaching millions.
The best timing to bottom out the exchange rate often occurs when the USDe/sUSDe PT expires or when circular loans are concentrated for liquidation.
For instance, Aave and Ethena previously announced that the subsidies for circular loans would only last for a month, after which they would decrease. If the subsidies are not renewed, sUSDe and USDe may face selling pressure.
However, Morpho recently stated that it will collaborate with Ethena to open circular loans, and if the subsidies continue at that time, then this arbitrage opportunity will significantly diminish.
Note: The above is for information sharing only and is not investment advice; please do your own research!
14.57K
7
The content on this page is provided by third parties. Unless otherwise stated, OKX TR is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX TR. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX TR is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.