We’re building out our collateral options on FiRM and just added a new kind of yield bearing asset; sUSDe from Ethena Labs. Worth taking a look for multiple reasons:
Attractive yield bearing asset. First, while Ethena markets USDe as a “synthetic dollar” and not a stablecoin, it has most characteristics of a USD-pegged stablecoin and staked USDe, sUSDe, generates yield by investing collateral into derivatives strategies where yield today is currently 8%. Among yield-bearing stablecoins and yield-bearing quasi-stablecoins, sUSDe is doing heavy lifting and generating the TVL to prove it.
Earn Ethena sats. Holders of sUSDe can earn points - “sats” - when can be redeemed for Ethena’s governance token ENA. Ethena’s sats program is scheduled to continue for over a year so still plenty of time to enhance your sUSDe yield with sats. More on Ethena’s sats program here. Just holding sUSDe on FiRM currently gets you a 5x sats reward per day.
Borrow with maximum leverage using fixed rates. On FiRM, you can borrow at a 90% collateral factor against sUSDe using a fixed rate, currently 4.85%. But with the Accelerated Leverage Engine, you can “loop” your position up to 10 times in a single click, bringing you even greater leverage.
Check out the suSDE market on FiRM here.
About sUSDE
sUSDe is a synthetic dollar protocol built on Ethereum that is essentially a yield-bearing version of USDe, Ethe. When users stake USDe, they receive sUSDe, which accrues yield over time. This yield comes from multiple sources including staking rewards from Ethereum and profits from derivatives market spreads, thanks to Ethena's strategy involving delta-hedging and leveraging Ethereum's staking mechanism.
Security and Risk Management
The Risk Working Group (RWG) has conducted a comprehensive risk assessment to ensure the safety and reliability of the sUSDe market on FiRM. We also limit total collateral exposure for stablecoin assets - of which sUSDe is included - to 25% of all borrows on FiRM.
Do Your Own Research
As always, it is crucial for users to conduct their own research (DYOR) before depositing sUSDe into FiRM. While we strive to provide secure and reliable borrowing options, it is essential to understand the risks associated with borrowing in DeFi.
