{"id":60484,"date":"2025-11-26T13:01:53","date_gmt":"2025-11-26T13:01:53","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=60484"},"modified":"2025-11-26T13:01:53","modified_gmt":"2025-11-26T13:01:53","slug":"usde-tvl-plummets-50-megaeth-presale-suffers-critical-technical-problem-crypto-treasuries-reel-where-do-we-go-from-here","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=60484","title":{"rendered":"USDe TVL Plummets -50%, MegaETH Presale Suffers Critical Technical Problem, Crypto Treasuries Reel: Where Do We Go From Here?"},"content":{"rendered":"
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In today\u2019s crypto update, Ethena saw its total value locked (TVL) drop from $14.8 billion to $7.6 billion, a reduction of more than 50% that highlights how tricky yield-bearing stablecoins can be.<\/p>\n

When markets grow, they grow fast. However, they contract just as quickly. USDe\u2019s TVL dropped as traders exited looping strategies on platforms such as Aave, where they were habitually recycling staked USDes as collateral to borrow USDC, only to swap back and repeat.<\/p>\n

\"Ethena<\/p>\n

(Source: DefiLlama<\/a>)<\/p>\n

This created a leverage of 10x or more, and while it worked when the USDe\u2019s yield was higher than the borrowing cost, now that the yield has fallen below Aave\u2019s 5.4% loan rate, this strategy has run its course.<\/p>\n

The USDe performs a balancing act to maintain its dollar peg. It holds regular crypto assets and, at the same time, bets against them in the futures market.<\/p>\n

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The “dead bodies” conversation post 10\/10 is still active, and sentiment on $USDe<\/a> remains extremely low. <\/p>\n

Aug 26 \u2013 Oct 10: $USDe<\/a> was aggressively capturing share, growing supply by +20% (vs $USDT<\/a> & $USDC<\/a> at ~6% and ~9%).<\/p>\n

Post-10\/10: The market reaction was instant. While majors\u2026 pic.twitter.com\/Q7Xu8hbnIb<\/a><\/p>\n

\u2014 chenti (@_Chenti_) November 24, 2025<\/a><\/p>\n<\/blockquote>\n