hvax.eth

[AAVE] Add USDe to the sUSDe emode Category

Voting ended 5 months agoSucceeded

Simple Summary

This proposal aims to add USDe as collateral to the existing sUSDe/Stablecoins emode category to improve capital efficiency and provide a more cohesive borrowing experience for users of Ethena assets on Aave.

Motivation

Currently, the sUSDe (Ethena Synthetic USD) has its own e-mode category in Aave, allowing for optimized borrowing for this specific asset. However, USDe, the native stablecoin from Ethena, is not included in this same e-mode category despite being the underlying asset for sUSDe.

Rationale

USDe and sUSDe are intrinsically linked, with sUSDe being the staked version of USDe
Both assets have similar risk profiles and high correlation
Adding USDe as collateral to the same e-mode category would allow users to add USDe exposure while maintaining their leverage.
This change would allow borrowers to use either asset as collateral more effectively

Specification

USDe will be added as collateral to the sUSDe stablecoin emode (id:2)

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| | sUSDe | Collateral | Collateral | | USDe | None | Collateral | | USDC | Borrowable | Borrowable | | USDT | Borrowable | Borrowable | | USDS | Borrowable | Borrowable |