What could affect the price of USDe?
USDe’s stability is caught between exciting new ways to earn yield and the risks that come with complex financial strategies.
- Hyperliquid USDH Proposal – Ethena’s plan to launch USDH on Hyperliquid could increase USDe’s use in decentralized finance (DeFi), which is a positive sign.
- Yield and Risk – High interest rates attract users, but changes in funding costs and Ethereum’s price swings could cause instability.
- Regulatory Environment – New U.S. laws support stablecoins, but Ethena’s exit from the EU limits growth there, balancing out the impact.
Deep Dive
1. Hyperliquid USDH Proposal (Positive Outlook)
Ethena wants to issue USDH on the Hyperliquid platform, offering $150 million in incentives, sharing 95% of revenue, and using collateral backed by BlackRock. If validators approve this on September 14, USDH could become a key player in DeFi derivatives, increasing demand for USDe.
This means USDe could attract more institutional investors and generate significant revenue—between $117 million and $350 million annually for Ethena (Hyperliquid).
2. Yield Sustainability and Leverage Risks (Mixed Outlook)
USDe offers attractive annual yields between 10% and 19% through staking and futures funding. However, about 30% of its $14 billion supply is tied up in leveraged strategies, like borrowing on platforms such as Aave and Pendle. If funding rates turn negative or Ethereum’s price drops sharply, these strategies could fail.
This creates a risk of a “liquidity crunch,” where many users might try to withdraw at once, potentially causing a chain reaction of liquidations. For example, $6.4 billion is exposed on Aave alone (The Block).
3. Regulatory Tailwinds and Headwinds (Neutral Outlook)
The U.S. GENIUS Act provides clear legal support for stablecoins, encouraging adoption. Meanwhile, BaFin’s plan to allow redemption by June 2025 has eased EU regulatory concerns. However, Ethena’s decision to leave the EU market limits growth opportunities there.
On the bright side, U.S. institutional support, like Anchorage’s custody services, helps balance these challenges. Federal Reserve Governor Waller’s positive stance on stablecoins also boosts confidence, though meeting EU regulations like MiCA remains a challenge (CoinMarketCap).
Conclusion
USDe’s price stability depends on managing the appeal of high yields against the risks of leveraged DeFi strategies. Regulatory progress and the upcoming Hyperliquid vote could strengthen its $14 billion market presence, but Ethereum’s price swings and funding rate changes remain key risks.
Will USDe’s supply growth outpace systemic risks in Q4?
What are people saying about USDe?
Ethena’s USDe is attracting both investors chasing high returns and cautious skeptics. Here’s the latest:
- Binance listing boosts ENA by 12% – though concerns about trading slippage remain
- 10% annual yield on sUSDe versus $5 million daily arbitrage profits sparks discussion
- “Synthetic UST 2.0?” – Traders debate potential risks similar to past stablecoin failures
In-Depth Look
1. @coin68: Binance adds USDe trading pairs – positive sign
“USDe supply reaches 12 billion… ENA price jumps 12% after listing”
– @coin68 (22.4K followers · 48K impressions · Sept 9, 2025, 07:51 UTC)
See original post
What this means: This is good news for USDe adoption. Binance’s support improves liquidity, making it easier to buy and sell USDe. The 12% price increase in ENA shows investors are optimistic about the growth of Ethena’s ecosystem.
2. @Juu17__: Trading slippage costs 0.09% per swap – mixed impact
“Swapping 10,000 USDT yields only 9,991 USDe… protocols earn $5 million daily from trading spreads”
– @Juu17 (18.3K followers · 32K impressions · Sept 13, 2025, 15:03 UTC)
[See original post](https://x.com/Juu17/status/1966880538490532291)
What this means: There are pros and cons here. While market makers benefit from the $5 million daily arbitrage profits, the 0.09% average slippage means traders lose a small amount on each swap. This suggests that liquidity needs to improve as USDe supply grows.
3. @CobakOfficial: Exploiting regulatory loopholes – cautious outlook
“USDe sidesteps yield restrictions… critics warn of risks similar to Terra’s collapse”
– @CobakOfficial (189K followers · 2.1M impressions · Aug 11, 2025, 03:25 UTC)
See original post
What this means: Some experts are warning about potential risks. USDe’s stable 30-day funding rate (around +0.02%) is being challenged as supply hits $14 billion. Comparisons are being made to the collapse of Terra’s UST stablecoin, raising concerns about structural vulnerabilities.
Conclusion
Opinions on USDe are divided. On one hand, the Binance listing and 10% APY suggest strong adoption potential. On the other, trading slippage and structural risks raise questions about long-term sustainability. Keep an eye on the ETH perpetual funding rate (currently +0.016%). If it turns negative, it could trigger a wave of redemptions, while sustained positive rates might support USDe’s reputation as an “Internet Bond.” The key question remains: Can this synthetic stablecoin maintain stability through market ups and downs?
What is the latest news about USDe?
Ethena’s USDe stablecoin is gaining momentum thanks to support from big financial players and innovations in decentralized finance (DeFi). Here are the latest updates:
- Binance Listing Confirmed (September 9, 2025) – USDe trading pairs with USDC and USDT are now live, improving liquidity.
- USDH Stablecoin Proposal (September 11, 2025) – Ethena aims to back Hyperliquid’s stablecoin with collateral from BlackRock’s fund.
- Altseason Spotlight (September 12, 2025) – USDe is recognized as a leading DeFi asset during a $1.88 trillion altcoin market surge.
Deep Dive
1. Binance Listing Confirmed (September 9, 2025)
Overview:
Binance, one of the world’s largest cryptocurrency exchanges, started offering spot trading for USDe on September 9. This includes trading pairs USDe/USDC and USDe/USDT. Before the listing, Ethena’s governance token ENA saw a 12% price jump, and USDe’s total supply in circulation surpassed $12 billion.
What this means:
The Binance listing makes USDe easier to buy and sell, especially in the Asia-Pacific region. Binance also handles a huge volume of derivatives trading (about $810 billion daily), which could help USDe become part of more advanced trading strategies. (Coin68)
2. USDH Stablecoin Proposal (September 11, 2025)
Overview:
Ethena proposed creating USDH, a stablecoin for Hyperliquid, backed by BlackRock’s BUIDL fund through Anchorage Digital. The proposal includes $75 million to $150 million in incentives and offers 95% of revenue to Hyperliquid validators.
What this means:
If approved by validators on September 14, this partnership would boost USDe’s reputation among institutional investors and increase its use in decentralized trading platforms. However, there is competition from other stablecoin projects like Paxos and Frax, which could affect the outcome. (Bitrue)
3. Altseason Spotlight (September 12, 2025)
Overview:
A report from CoinEx highlights USDe as a top “DeFi blue chip” asset during the 2025 altcoin season. It points to USDe’s $12 billion supply, over $500 million in revenue, and its role in Ethereum-based yield strategies.
What this means:
USDe’s growth reflects a shift of capital into compliant, yield-generating crypto assets. Its 11% annual percentage yield (APY) stands out compared to the flat returns on regulated stablecoins following the GENIUS Act. (CoinEx)
Conclusion
USDe is gaining traction through new exchange listings, partnerships with major financial players, and its unique position as a yield-bearing stablecoin. With a circulating supply over $12 billion and integration on Binance, it shows signs of maturity. However, regulatory challenges and competition from other synthetic dollar projects remain risks. The key question is whether Ethena can maintain its 11% APY advantage as market volatility increases during altseason.
What is expected in the development of USDe?
Ethena USDe’s roadmap highlights key updates and improvements:
- Pendle USDe Pool Launch (Nov 27, 2025) – A new way to earn higher yields.
- Gatekeeper Network Expansion (Q4 2025) – Boosting security with outside partners.
- Converge Blockchain Integration (2026) – Making USDe a native stablecoin in a new blockchain ecosystem.
In Detail
1. Pendle USDe Pool Launch (Nov 27, 2025)
What’s happening:
Ethena will introduce a USDe pool on Pendle, offering users 60 times the usual yield rewards ("sats") if they move their funds from pools ending in August 2025. This product lets users lock their USDe for a set period to earn fixed returns, using Pendle’s system that turns future yields into tradable tokens.
Why it matters:
This encourages people to keep their USDe invested longer and attracts those looking for better returns. However, if too many similar products appear, it could reduce demand.
2. Gatekeeper Network Expansion (Q4 2025)
What’s happening:
Ethena plans to bring in outside groups called Gatekeepers to help oversee and secure the process of creating and redeeming USDe tokens. This move is part of efforts to spread out security responsibilities and reduce risks from any single administrator’s access being compromised, as explained in their GitHub documentation.
Why it matters:
This change should make the system safer by lowering the chance of attacks focused on central points. But it also means more coordination is needed, and success depends on how trustworthy and responsive these partners are.
3. Converge Blockchain Integration (2026)
What’s happening:
Ethena is launching the Converge blockchain, where USDe will be a built-in stablecoin. This will allow USDe to work smoothly with decentralized apps (dApps) and liquidity pools across different blockchains.
Why it matters:
This integration will increase USDe’s usefulness and presence in the decentralized finance (DeFi) world. However, delays or competition from other blockchains could pose challenges.
Conclusion
Ethena USDe is focusing on improving yield opportunities, enhancing security through decentralization, and expanding its ecosystem. The Pendle pool and Converge blockchain aim to strengthen USDe’s role as a leading yield-generating stablecoin, while Gatekeeper upgrades address important security concerns. The big question remains: Can USDe’s blend of decentralized finance and traditional finance features hold up under growing regulatory scrutiny as more people start using it?
What updates are there in the USDe code base?
Ethena USDe’s latest software updates focus on improving DeFi (decentralized finance) features and ways to earn more yield.
- Liquid Leverage on Aave (July 29, 2025) – Users can now use USDe and sUSDe as collateral to borrow and increase their yield farming returns.
- sUSDe E-Mode Activation (July 29, 2025) – This feature boosts borrowing power by treating USDe and sUSDe as related assets, making leveraged positions more efficient.
Deep Dive
1. Liquid Leverage on Aave (July 29, 2025)
What happened: Users can deposit equal parts of sUSDe and USDe on the Aave platform to borrow stablecoins and reinvest those funds, effectively increasing their potential earnings. This “looping” strategy helps users earn more from sUSDe’s roughly 12% annual yield.
New smart contracts keep track of how much collateral users have and whether they qualify for rewards. These rewards are given through @merkl_xyz and apply retroactively from the launch date.
Why it matters: This update makes USDe more useful in DeFi by enabling more advanced yield strategies, which can attract more investment. However, using leverage means there’s a risk of losing funds if the market moves sharply, so users need to be cautious.
(Source)
2. sUSDe E-Mode Activation (July 29, 2025)
What happened: Aave’s “e-mode” feature now treats USDe and sUSDe as connected assets. This allows users to borrow up to 92% of their collateral’s value when using these coins, increasing borrowing power.
Developers also improved price feeds (oracles) to reduce price swings during liquidations, making the system more stable.
Why it matters: This change helps experienced users get more out of their collateral, but it could put pressure on liquidity if many users try to exit positions at once. Its overall effect depends on how popular leveraged yield farming remains.
(Source)
Conclusion
Ethena’s recent updates strengthen USDe’s role as a stablecoin designed to earn yield by improving how it works with DeFi platforms. These improvements encourage more use and adoption but also introduce risks related to leverage. The key question is how well USDe can maintain its price stability during times of market stress as it becomes more integrated with complex DeFi strategies.