According to DL News, Chaos Labs, Aave's risk advisory firm, posted on the Aave Governance Forum that as the number of USDe deposited into the Aave protocol continues to increase, USDe may threaten Aave's risk resistance and trigger liquidity tightening. USDe holders deposit a large amount of the token into Aave, while at the same time, its issuer Ethena lends out stablecoins that support the asset, posing significant risks. Ethena must avoid depositing excessive stablecoin reserves into Aave and self limit this risk exposure, which helps maintain the integrity of the redemption mechanism and market stability.
Ethena has deposited $580 million in USDe backed assets into Aave, a strategy known as re collateralization. In addition, Aave's current $4.7 billion exposure comes from USDe backed assets, including PT and sUSDe, accounting for over 55% of the total USDe supply. Chaos Labs states:; The dual role of supporting assets, being both Aave's redemption capital and liquidity, creates a vulnerability that may exacerbate pressure on both agreements during deleveraging events. ” Due to the growth and contraction cycles of the USDe support mechanism, when the market is bearish, if the supporting assets are lent out, the redemption of USDe holders may cause problems. Its cyclical strategy further amplifies the risk, which may lead to a tightening of Aave liquidity and an increase in lending rates, triggering a chain reaction. However, there is currently no immediate reason for concern, as the release of cyclical positions during the contraction period may offset the surge in utilization. But as USDe grows or re collateralization increases, the situation may change. Chaos Labs is developing a new risk prediction tool to regulate interest rates and ensure orderly redemptions during market stress periods.
