POPA ReconEthena is now mostly out of Aave deposits (notable exceptions of Mantle where Ethena has $268 million stuck and potentially subject to a…
Ethena is now mostly out of Aave deposits (notable exceptions of Mantle where Ethena has $268 million stuck and potentially subject to a partial haircut, along with $140 million USDtb deposit in Aave Core which Ethena is inexplicably not withdrawing despite the risk of capital impairment) With stablecoin markets at full utilization across the 4 markets, loopers are now at significant negative ROI (potentially -50% APY or more). in practice, this means we expect the Aavethena loop to essentially fully unwind in the coming days, which could result in roughly ~1.4 billion reduction in USDe circu…
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