USDe loop arbitrage: deposit USDe collateral on Aave to borrow USDe, swap it into sUSDe to earn yield, and profit from the spread between borrowing costs and collateral yields. Only a positive interest spread works—if it turns negative, you should unwind the loop and deleverage.
Now Aave has raised the USDe base rate to 6%, making the actual borrowing cost 6.02%-6.39%. sUSDe yields only 5.01%, and the spread is -1% to -1.4%, so the loop is no longer worthwhile. AAVE is currently priced at $125.21, ENA is at $0.1415, down 3.6% in 24h. Ecosystem tokens are weakening—it's clear that demand for the loop is ebbing. When yield is below the borrowing rate during this period, the main action is to unwind the loop; only when the spread turns positive should you consider adding leverage.#ENA #AAVE
Now Aave has raised the USDe base rate to 6%, making the actual borrowing cost 6.02%-6.39%. sUSDe yields only 5.01%, and the spread is -1% to -1.4%, so the loop is no longer worthwhile. AAVE is currently priced at $125.21, ENA is at $0.1415, down 3.6% in 24h. Ecosystem tokens are weakening—it's clear that demand for the loop is ebbing. When yield is below the borrowing rate during this period, the main action is to unwind the loop; only when the spread turns positive should you consider adding leverage.#ENA #AAVE