Recap

USDe supply is approaching $800m, up nearly $200m since Friday.

Pendle’s 200m USDe cap is now full and there is over 100m USDe locked in Curve.

Update

Ethena’s newest pool is now live on Pendle, this time using sUSDe with 5x shards per day.

This pool will now capture the real yield in sUSDe, alongside 5x shards per day. For reference, the current implied APY on PT USDe without any real yield in sUSDe is >100% APY on $200m.

We are incredibly excited about this product as it now unlocks an ability to trade the CEX futures basis onchain and create the first scalable yield curve in crypto with staggered maturities. We believe this will unlock a whole new suite of interest rate products to be built upon this core primitive.

As is the case with Pendle pools, users will have the option to choose the PT-sUSDe token for fixed yield, YT-sUSDe for sUSDe yield and shards, or a LP position earning a combination of both tokens + swap fees and Pendle incentives.

At the time of writing, open interest-weighted funding is sitting at 120% annualized.

Next Monday the 11th March, we will move to reduce some of the shard rewards as detailed in our first blog post on the shard campaign:

“The Shards per Epoch will decay through time, or in other words, you will receive less rewards as the program takes place and being early will result in the highest number of Shards awarded.“

The following adjustments will me made to shard rewards starting on Monday 11th March:

• Curve LP will be reduced slightly from 20x to 15x per day, and will not be lowered again until the end of the shard campaign. Curve LP’s remain the largest shard reward recipient by far, and extrapolating the Pendle pricing this week have been earning 160-220% implied APY since the beginning of the campaign.

• Simply holding USDe outside of any pools or locks will drop from 5x to 2x per day and will not be lowered again. This is to incentivize active usage of USDe in our upcoming integrations with L2s and money markets, detailed below.

• All other shard rewards remain the same

There also remains open a pool on our dapp to lock USDe at https://app.ethena.fi/liquidity for 10x shards, which has about $10m left until the cap.

Integrations

We have multiple new integrations we are excited to announce over the coming week or two as USDe grows onchain including:

Integrations with multiple Layer 2’s, using sUSDe to provide a native yield to their ecosystem, specifically:

i) Mantle, mantle.xyz

ii) Metis, metis.io

iii) Injective, injective.com

iv) Mode, mode.network

v) Manta, manta.network

vi) Parallel, https://parallel.fi/

vii) Movement, https://movementlabs.xyz/

with others to be announced in the next week.

Money market integrations offering borrow/lend leveraged markets for USDe and sUSDe on:

i) Morpho app.morpho.org

ii) Gearbox gearbox.fi

iii) Ajna ajna.finance

iv) Init Capital init.capital

A temperature check to Aave has been submitted for community approval:https://governance.aave.com/t/temp-check-onboard-susde-to-aave-v3-on-ethereum/16840

Going Forward

As Epoch 2 comes to a close and USDe approaches $1bn, we will provide further updates before that milestone on our plans for the final Epoch 3.

Until next Monday, all shards will continue earning in the schedule as they have done during Epoch 1 and 2, and any USDe in cooldown will earn shards until unlocked.

Any users who fully exit any of the incentivized pools by selling out of the system prior to the end of the shard campaign will lose all of their shards. If you have repositioned between USDe, sUSDe, LP pools or Pendle you will still receive your shards.

For a full recap on Ethena’s launch over the last few weeks, read this post, and you can expect another shard campaign update from us shortly.