{"id":586268,"date":"2026-04-07T10:00:36","date_gmt":"2026-04-07T14:00:36","guid":{"rendered":"https:\/\/ambcrypto.com\/?p=586268"},"modified":"2026-04-07T08:43:53","modified_gmt":"2026-04-07T12:43:53","slug":"will-ethena-expand-its-usde-collateral-beyond-crypto-amid-poor-positioning","status":"publish","type":"post","link":"https:\/\/ambcrypto.com\/will-ethena-expand-its-usde-collateral-beyond-crypto-amid-poor-positioning\/","title":{"rendered":"Will Ethena expand its USDe collateral beyond crypto amid \u2018poor positioning\u2019?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Ethena [ENA] plans to diversify its USDe reserve assets into non-crypto assets to boost its falling yield and poor market performance.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to Gary Young, the Ethena founder, the protocol has been \u201cpoorly positioned\u201d since the October crash as crypto winter compressed yields and triggered volatility.\u00a0<\/span><span style=\"font-weight: 400;\">Going forward, Young added, the USDe reserve will have access to:<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">Basis on non-crypto assets, including commodities and equities, institutional triparty collateralized lending via Coinbase, Kraken, Anchorage, and prime lending across CeFi\/ HyperliquidX and liquid high-quality non-TBill RWA exposures.<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">For the unfamiliar, basis refers to the spread or profit between a spot price and its derivatives. So far, Ethena has been generating yield from staking rewards and capturing basis across <a href=\"https:\/\/ambcrypto.com\/search\/bitcoin\" target=\"_blank\" rel=\"noopener\">Bitcoin [BTC]<\/a>, <a href=\"https:\/\/ambcrypto.com\/category\/ethereum-news\/\" target=\"_blank\" rel=\"noopener\">Ethereum [ETH]<\/a>, and <a href=\"https:\/\/ambcrypto.com\/search\/solana\" target=\"_blank\" rel=\"noopener\">Solana [SOL]<\/a>.\u00a0<\/span><\/p>\n<h2><strong>Ethena&#8217;s USDe lags rivals as yield crashes<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">But the ongoing market rout has derailed Ethena\u2019s crypto-native strategy.\u00a0 In late 2024 and early 2025, USDe yield hovered around 10% and 22%. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">At that time, USDe\u2019s interest rate was five times more lucrative than the T-Bill&#8217;s yield of 4%. Additionally, it was more than twice Sky\u2019s (formerly MakerDAO) sUSDS rate of 9%.\u00a0<\/span><span style=\"font-weight: 400;\">In other words, it&#8217;s a relatively high yield that attracted risk-averse investors effortlessly during the bull run.\u00a0<\/span><\/p>\n<figure id=\"attachment_586275\" aria-describedby=\"caption-attachment-586275\" style=\"width: 1384px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/Ethena-USDe-yield-rates.jpg\"><img decoding=\"async\" class=\"size-full wp-image-586275\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/Ethena-USDe-yield-rates.jpg\" alt=\"Ethena USDe\" width=\"1384\" height=\"860\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/Ethena-USDe-yield-rates.jpg 1384w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/Ethena-USDe-yield-rates-300x186.jpg 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/Ethena-USDe-yield-rates-1024x636.jpg 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/Ethena-USDe-yield-rates-768x477.jpg 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/Ethena-USDe-yield-rates-1200x746.jpg 1200w\" sizes=\"(max-width: 1384px) 100vw, 1384px\" \/><\/a><figcaption id=\"caption-attachment-586275\" class=\"wp-caption-text\"><span style=\"font-weight: 400;\">Source: Dune\/Entropy Advisors<\/span><\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">But the yield collapsed in 2025.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Market fear intensified following the October crash, which was partly triggered by the USDe depegging on the Binance platform. It affected the crypto yield segment.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As of April 2026, USDe\u2019s weekly average yield has fallen to 3.54%. Interestingly, the T-Bill rate is also at 3.54% but has no inherent risks associated with USDe reserve assets. In other words, you\u2019re better off parking your money in T-Bills than in relatively risky USDe if they offer the same rewards.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The results?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Over $9 billion was <\/span><a href=\"https:\/\/ambcrypto.com\/usde-outflows-slash-ethena-tvl-by-50-after-october-10-crash-whats-next\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">redeemed<\/span><\/a><span style=\"font-weight: 400;\"> from USDe in late 2025. Apart from a slight bounce in January 2026, the synthetic stablecoin has seen consecutive monthly outflows. This has slashed its market cap from $14.8 billion to $5.8 billion: a 2.5x decline.\u00a0<\/span><\/p>\n<figure id=\"attachment_586274\" aria-describedby=\"caption-attachment-586274\" style=\"width: 902px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/Screenshot-2026-04-07-090118-1.png\"><img decoding=\"async\" class=\"size-full wp-image-586274\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/Screenshot-2026-04-07-090118-1.png\" alt=\"Ethena USDe\" width=\"902\" height=\"640\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/Screenshot-2026-04-07-090118-1.png 902w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/Screenshot-2026-04-07-090118-1-300x213.png 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/Screenshot-2026-04-07-090118-1-768x545.png 768w\" sizes=\"(max-width: 902px) 100vw, 902px\" \/><\/a><figcaption id=\"caption-attachment-586274\" class=\"wp-caption-text\">Source: Dune<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">From this backdrop, Ethena\u2019s move aims to shake off the reliance on crypto market cycles. For Young, the diversification should have been done a long time ago, adding that,\u00a0<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">Each of the above (new reserve assets, income streams) represents multi-billion capacity opportunities with that will now sit alongside the existing USDe collateral base to improve the product resilience through the cycle.<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">While some experts supported the move, others still viewed USDe as a risky bet.\u00a0<\/span><\/p>\n<hr \/>\n<h2>Final Summary<\/h2>\n<ul>\n<li style=\"font-weight: 400;\"><em><span style=\"font-weight: 400;\">Ethena wants to expand reserve assets to commodities, equities, and new institutional lending to improve USDe&#8217;s declining yield rates and recent underperformance<\/span><\/em><\/li>\n<li style=\"font-weight: 400;\"><em><span style=\"font-weight: 400;\">USDe supply has declined by 2.5x to below $6 million amid low demand as crypto rout intensifies<\/span><\/em><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>USDe&#8217;s market supply has decreased from over $14 billion to below $6 billion amid relatively unattractive yield.<\/p>\n","protected":false},"author":79,"featured_media":586281,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[31,950,66,3,4,5825,20],"tags":[],"class_list":["post-586268","post","type-post","status-publish","format-standard","has-post-thumbnail","category-altcoins-news","category-defi","category-new-news","category-news","category-social","category-stablecoins","category-trading-view"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Will Ethena expand its USDe collateral beyond crypto amid \u2018poor positioning\u2019? 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