USDe and sUSDe: Innovations and Challenges of Synthetic Stablecoins

Recently, a new type of synthetic stablecoin USDe has emerged in the cryptocurrency market, launched by Ethena Labs. Unlike traditional fiat-backed stablecoins, USDe uses a crypto asset-based anchoring mechanism, without relying on the traditional banking system. Currently, its circulation scale has exceeded 8 billion USD.

The core mechanism of USDe is the "delta neutral" structure: the protocol holds positions in assets such as ETH while simultaneously opening equivalent perpetual short positions in ETH on derivative trading platforms. Through this hedging combination, USDe achieves a net asset exposure close to zero, thereby maintaining a stable price around 1 USD.

sUSDe is a representative token obtained by users after staking USDe, which has the characteristic of automatically accumulating returns. Its returns mainly come from the funding rate returns of ETH perpetual contracts and the derived returns of the underlying staked assets.

Recently, a lending protocol has launched a feature module called "Liquid Leverage" in collaboration with USDe. This mechanism requires users to deposit sUSDe and USDe into the protocol at a 1:1 ratio, forming a compound staking structure, and earning additional incentive rewards. Users can enjoy triple benefits: USDe rewards distributed by the platform, protocol earnings represented by sUSDe, and the basic deposit interest from the lending protocol.

However, this high-yield model is not sustainable in the long term. Once external incentives cease, ETH prices drop, and funding rates turn negative, the delta-neutral yield mechanism of the USDe model will be impacted. The yield of sUSDe may drop to zero or even become negative, accompanied by a large number of redemptions and sell pressure, and the price anchoring mechanism of USDe will also face challenges.

Recent data shows that the total locked amount of USDe and sUSDe has declined concurrently during the phase of rising ETH prices, and the annualized yield has not increased in tandem. This "draining during the rise" phenomenon indicates that market confidence is beginning to price in risks in advance. The current liquidity of USDe is stable and largely relies on the strategy of continuous subsidies to maintain stability.

In the future, the sustainability of incentive programs and the protocol's ability to timely adjust its structure to enhance resilience will be key factors in whether USDe can truly become the "third pole of stablecoins."