What could affect the price of USDe?
USDe’s synthetic dollar model is navigating a balance between growing institutional interest and some underlying risks.
- Regulatory changes – The U.S. GENIUS Act increases demand for non-regulated yield options, but restrictions in Europe limit expansion.
- Exchange adoption – Listing on Binance (September 9, 2025) improves liquidity but challenges the stability of USDe’s peg during high trading volumes.
- Yield sustainability – The 9% annual yield from ETH-based strategies may face pressure if cryptocurrency market volatility decreases.
Deep Dive
1. Regulatory Support in the U.S. vs. Setbacks in Europe (Mixed Effects)
Overview:
The U.S. GENIUS Act, passed in July 2025, banned yield-bearing regulated stablecoins, redirecting over $2.7 billion in monthly inflows toward USDe. On the other hand, Ethena’s German branch stopped operations after regulatory enforcement by BaFin, cutting off access to about 450 million potential users in the European Union (CoinMarketCap).
What this means:
Strong demand in the U.S. could balance out the loss of European users. USDe’s supply grew 31% after the GENIUS Act, showing that regulatory differences are influencing where investors put their money. However, relying on synthetic stablecoin models like USDe carries the risk of future regulatory challenges.
2. Increased Liquidity from Binance Listing (Positive Impact)
Overview:
On September 9, 2025, Binance added trading pairs USDe/USDT and USDe/USDC, following Ethena’s integration with institutional platform FalconX. This led to a 41.6% jump in USDe’s 24-hour trading volume, reaching $1.41 billion (BYDFi).
What this means:
More liquidity means less price slippage—currently just 0.09% for $10,000 trades—and better support for keeping USDe’s value stable. However, nearly half (47%) of USDe’s supply is staked, so if many holders withdraw their stakes during market turbulence, it could put pressure on the system’s ability to redeem tokens smoothly.
3. Sustainability of Yield (Potential Risk)
Overview:
USDe offers a 9% annual yield, which comes from ETH staking rewards (3-4%) and short positions on ETH futures (6-8%). However, ETH’s 30-day price volatility dropped to 48% in September from 68% in August, reducing the premiums earned from these strategies (Ethena Docs).
What this means:
If ETH remains less volatile for an extended period, the yield could decrease significantly, pushing investors to move their money to safer options like U.S. Treasuries, which currently offer about a 5.2% risk-free return. Still, Ethena’s $890 million treasury buyback program provides some cushion to temporarily support yields.
Conclusion
USDe’s ability to maintain its peg depends on balancing attractive DeFi-based yields with competition from traditional, low-risk investments. While exchange listings and favorable U.S. regulations support its $12.6 billion market value, the protocol’s backing ratio of 101.38% leaves little room for error if ETH or its derivatives experience sudden price swings. The key question remains: Will increased ETH volatility in Q4 revive the funding rate arbitrage that helped USDe grow?
What are people saying about USDe?
USDe’s recent milestones are drawing both excitement and skepticism as its stablecoin model faces real-world challenges. Here’s what’s trending:
- Binance listing boosts ENA token
- $310 million buyback reduces supply
- 10% annual yield attracts investors
- $12 billion market cap raises systemic risk concerns
Deep Dive
1. Binance Listing Boosts USDe Adoption 🚀 bullish
According to @coin68, USDe now has $12 billion in supply backed by Bitcoin and Ethereum reserves. After the Binance listing announcement, the ENA token jumped 12%.
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What this means: This is positive for USDe because Binance’s large trading volume helps reduce price swings and brings more institutional interest. However, it’s still unclear how well USDe’s price peg will hold up as more people use it.
2. Aggressive Buyback Targets Circulating Supply 🐂 bullish
@Toknex_xyz reports a $310 million buyback of ENA tokens, which is about 13% of the total supply. This buyback is funded by major investors like Dragonfly and Brevan Howard, with the protocol generating $13 million in weekly revenue.
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What this means: This buyback creates artificial scarcity, which tends to push ENA’s price up. However, it raises concerns about whether the protocol’s revenue, heavily reliant on derivatives trading, is sustainable long-term.
3. sUSDe Yield Hits Double Digits 🌾 bullish
@ethena_labs shares that sUSDe holders can earn 10% annual percentage yield (APY) through delta-neutral strategies. Integrations with Bybit allow investors to use 5x leverage, potentially reaching 50% APR.
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What this means: High yields attract more capital into USDe, which is good for growth. But if funding rates turn negative—as they did in January 2025, causing a 4% drop in USDe’s peg—it could hurt confidence.
4. Liquidity Risks Surface Amid Growth 🚩 bearish
@Juu17__ points out that swapping USDT for USDe results in a daily slippage loss of 0.09%. Arbitrage bots are profiting $5 million daily from these price inefficiencies.
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What this means: This is a short-term warning sign. Fragmented liquidity makes it harder to keep USDe’s price stable. However, Ethena’s $250 million redemption buffer helps prevent panic selling.
Conclusion
The overall outlook on USDe is positive but cautious. Exchange listings and attractive yields are driving adoption, but risks remain—especially around collateral reuse (rehypothecation), with $4.7 billion exposure on platforms like Aave. Keep an eye on the sUSDe APY and centralized exchange liquidity. If yields fall below 7% or the USDe/USDT price gap on Binance widens beyond 0.5%, market sentiment could turn negative.
What is the latest news about USDe?
Ethena’s USDe stablecoin is gaining traction through strong institutional support and decentralized finance (DeFi) innovation. Here are the latest updates:
- Hyperliquid USDH Proposal (September 11, 2025) – Ethena aims to issue USDH, backed by BlackRock, with $150 million in incentives.
- Binance Listing (September 9, 2025) – USDe is now available for trading on Binance, increasing its market liquidity.
- $890 Million Treasury Funding (September 5, 2025) – StablecoinX secures funding to grow USDe’s presence in institutional markets.
In-Depth Look
1. Hyperliquid USDH Proposal (September 11, 2025)
What’s happening:
Ethena Labs has proposed launching Hyperliquid’s USDH stablecoin, which would be backed by USDtb—a token linked to BlackRock’s BUIDL fund. They’re offering a 95% revenue share and up to $150 million in incentives to support the ecosystem. The plan also includes migrating existing USDC trading pairs. Validators will vote on this proposal on September 14.
Why it matters:
This move could strengthen USDe’s ecosystem by expanding its use of high-quality, institutional-grade collateral across new blockchain networks. BlackRock’s involvement adds trust and credibility, while the revenue-sharing model may increase demand for USDe and Ethena’s native token, ENA. However, the proposal still needs approval from network validators to move forward.
(Read more at Bitrue)
2. Binance Listing (September 9, 2025)
What’s happening:
USDe was added to Binance’s spot trading markets, including pairs with USDT and USDC. This is USDe’s first major listing on a centralized exchange (CEX). Following the announcement, ENA’s price jumped 12%, showing strong market interest.
Why it matters:
Being listed on Binance improves USDe’s liquidity and accessibility, helping it compete with other major stablecoins like USDT and USDC. This could speed up adoption by institutional investors who often rely on centralized exchanges. Still, USDe faces stiff competition in the stablecoin market.
(Read more at Coin68)
3. $890 Million Treasury Funding (September 5, 2025)
What’s happening:
StablecoinX raised $530 million in a private investment round, bringing total funding to $890 million. The funds will be used to buy discounted ENA tokens to boost liquidity for USDe and USDtb. StablecoinX plans to list on Nasdaq and is backed by major investors like Brevan Howard and Dragonfly.
Why it matters:
This large capital injection shows strong institutional confidence in USDe’s approach, which aims to minimize risk through a delta-neutral model. The treasury’s large ENA holdings (over 3 billion tokens) could help stabilize governance but might also create selling pressure when tokens unlock.
(Read more at Cointelegraph)
Conclusion
USDe is rapidly growing thanks to strong institutional partnerships, new exchange listings, and significant capital investments. With backing from BlackRock and integration on major platforms like Binance, USDe is positioned as one of the fastest-growing stablecoins in DeFi. The key question remains: can USDe maintain this momentum as regulators increase scrutiny on synthetic assets?
What is expected in the development of USDe?
Ethena USDe is moving forward with key updates planned for late 2025:
- Fee Switch Activation (Q4 2025) – ENA token holders will start earning a share of the platform’s revenue through governance.
- Cross-Chain Expansion (Q4 2025) – USDe will become usable across more blockchain networks, increasing its reach in decentralized finance (DeFi).
- StablecoinX Nasdaq Listing (Q4 2025) – Ethena’s treasury arm plans to go public on Nasdaq, connecting digital dollars with traditional finance.
In-Depth Look
1. Fee Switch Activation (Q4 2025)
What’s happening:
Ethena will enable a “fee switch” that lets ENA token holders receive part of the platform’s earnings (Yahoo Finance). To make this happen, three goals must be met:
- USDe stablecoin supply surpasses $6 billion (already done).
- Total revenue generated exceeds $250 million (already done).
- USDe is listed on 4 out of the top 5 major centralized exchanges (still in progress).
Why it matters:
This move encourages token holders to participate in governance and supports wider adoption of USDe. However, success depends on completing exchange listings, which carries some risk.
2. Cross-Chain Expansion (Q4 2025)
What’s happening:
USDe is currently available on 24 different blockchain networks through LayerZero technology. Future plans include integration with BNB Chain’s Pendle pools and enhanced features on Aave V3, a popular lending platform (CoinMarketCap).
Why it matters:
Making USDe usable across multiple blockchains can increase its demand as a stable and liquid asset. However, spreading across many networks can lead to challenges like divided liquidity and potential security risks in smart contracts.
3. StablecoinX Nasdaq Listing (Q4 2025)
What’s happening:
StablecoinX, formed by merging Ethena’s treasury division with a special purpose acquisition company (SPAC), plans to list on Nasdaq under the ticker USDE (DL News).
Why it matters:
This listing aims to connect decentralized finance’s earning opportunities with traditional financial markets, potentially attracting large institutional investors. Still, regulatory approval and oversight remain significant challenges.
Conclusion
Ethena USDe’s roadmap highlights three main goals: sharing revenue with token holders, expanding usability across multiple blockchains, and bridging DeFi with traditional finance through a Nasdaq listing. Activating the fee switch could position USDe as a leading stablecoin that generates yield for its users. The biggest question is how evolving regulations will affect its plans to combine decentralized and traditional finance.
What updates are there in the USDe code base?
Ethena USDe’s latest software update now supports Liquid Leverage and improves how collateral works.
- Liquid Leverage Launch (July 29, 2025) – Users can now use Aave to borrow funds and boost their yield strategies with leverage.
- sUSDe e-Mode Activation (July 29, 2025) – Borrowing with sUSDe is now more efficient by treating related assets as connected.
In-Depth Explanation
1. Liquid Leverage Launch (July 29, 2025)
What happened:
Ethena added Liquid Leverage on Aave, a popular decentralized finance (DeFi) platform. This lets users deposit equal parts of sUSDe and USDe, borrow stablecoins like USDC, USDT, or USDS, and reinvest those borrowed funds to increase their potential earnings.
To make this work, Ethena updated its system to handle “collateral looping,” which means using borrowed assets as collateral again to borrow more. Users who participate can earn rewards around 12% annual percentage yield (APY). The update also includes automatic distribution of past rewards using a system called Merkl.
Why it matters:
This is a positive development for USDe because it opens up new ways for users to earn more through DeFi strategies. However, using leverage and looping can increase risks, especially if the market becomes unstable.
(Source)
2. sUSDe e-Mode Activation (July 29, 2025)
What happened:
Ethena enabled sUSDe e-Mode on Aave, which treats USDe and sUSDe as related assets. This allows users to borrow more efficiently, potentially up to 5 times their collateral.
The update adjusted how much collateral is needed and fine-tuned risk settings to fit Aave’s e-Mode system.
Why it matters:
This change is neutral for USDe. It helps users get more out of their assets but also means the system depends more on Aave’s liquidity pools. If Ethereum’s price becomes very volatile, there’s a higher chance of forced asset sales (liquidations).
(Source)
Summary
Ethena’s recent updates strengthen its partnership with major DeFi platforms like Aave, making USDe more useful for yield strategies. While this can drive adoption, it also increases reliance on external protocols. The key question is whether USDe’s risk controls can keep pace with its growth.