Ethena

Avalanche

would

Aave

<h2 id="tldr">TLDR</h2>
<ul>
 <li>Ethena Pay launched Earn+, a vault that loops USDe and USDT at about 11 times leverage and advertises up to 12% APY.</li>
 <li>The USDe price feed used on Aave follows USDT, so it may not detect a USDe-only drop in value.</li>
 <li>At 11x leverage, a 2% USDe discount would erase 22% of a user’s starting equity, before costs.</li>
 <li>A 1% rise in USDT borrowing costs would cut simple yearly returns on equity by about 10%.</li>
 <li>Withdrawals can be requested anytime and are processed within 24 hours, though Ethena Pay warns they can take longer.</li>
</ul>
<p>Ethena Pay has launched a new yield product called Earn+. It advertises returns of up to 12% APY, but its design carries risks that may not show up in reported numbers.</p>
<p><a href="https://pay.ethena.fi/blog/earn-launch" rel="noopener noreferrer nofollow">The product was announced on Oct. 28</a>. It uses USDe as collateral and borrows USDT against it, aiming for about 11 times leverage.</p>
<p>Earn+ is run by Upshift and Steakhouse through Aave v4 on Avalanche. Ethena Pay provides the app that users see.</p>
<h2 id="the-price-feed-follows-a-different-token">The Price Feed Follows a Different Token</h2>
<p>Lending platforms use price feeds, called oracles, to value collateral and debt. Aave uses these prices to measure how close a position is to being liquidated.</p>
<p>In an Oct. 20 technical review, Aave Labs said the USDe price feed on Avalanche follows USDT. It noted that this setup would miss a drop in USDe’s price that does not affect USDT.</p>
<p>The feed uses a Chainlink USDT/USD price with a $1.04 upper cap. If USDe slips while USDT holds steady, the vault could look healthy while users lose real value.</p>
<p>LlamaRisk, in a recommendation amended Oct. 19, proposed a 93% collateral factor for USDe. The exact vault account, its current balances, and its live oracle setup have not been verified.</p>
<p>CryptoSlate modeled a hypothetical position at 11 times leverage. In that example, $100 of equity supports 1,100 USDe against 1,000 USDT of debt.</p>
<p>If USDe falls to $0.99, equity drops 11%. At $0.98, the loss is 22%, and at $0.95, it reaches 55%, before fees and costs.</p>
<div class="embed-x">
 <blockquote class="twitter-tweet">
  <p>1/<a href="https://x.com/EthenaPay?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@EthenaPay</a> new Earn+ pays up to 12% on dollars<br>I traced where that yield comes from onchain <a href="https://t.co/eZkwoidmeA" rel="noopener noreferrer nofollow">https://t.co/eZkwoidmeA</a><a href="https://t.co/UjrEHjmlWu" rel="noopener noreferrer nofollow">pic.twitter.com/UjrEHjmlWu</a></p>
  <p>— Utkarsh | 0xAnon (@0xAnon0602) <a href="https://x.com/0xAnon0602/status/2115442296821043447?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">October 28, 2026</a></p>
 </blockquote>
</div>
<h2 id="borrowing-costs-and-withdrawals">Borrowing Costs and Withdrawals</h2>
<p>Because debt equals ten times the starting equity, borrowing costs matter. A 1% increase in the yearly USDT borrow rate would cut simple annual return on equity by about 10%.</p>
<p>Interest also adds to debt over time, which can lower a position’s health. Aave Labs noted that plain USDe does not earn yield on its own, unlike staked sUSDe.</p>
<p>Ethena Pay waives its own entry and exit fees. However, Upshift’s documents allow for management fees, performance fees, and a fee for instant redemption. A fee schedule specific to Earn+ has not been confirmed.</p>
<p>Upshift’s risk rules let an owner multisig pause withdrawals and trigger emergency withdrawals. Its redemption system includes a standard batch queue and an instant option funded by a cash buffer.</p>
<p>Ethena caps total Earn+ deposits at $4.5 million. Individual limits are $20,000 for Standard users, $50,000 for Pro, and $200,000 for VIP.</p>
<p>Ethena Pay as a whole holds more than $8 million in USDe and has about 1,400 active users. The app is live in 47 countries, with the US, EU, and UK listed as coming soon.</p>
<p>Ethena Pay says withdrawal requests have no lock-up and are processed within 24 hours. Its FAQ warns that some withdrawals can take longer.</p>
<p>The post <a href="https://blockonomi.com/ethena-pay-launches-earn-vault-with-11x-usde-leverage-on-aave/" rel="noopener noreferrer nofollow">Ethena Pay Launches Earn+ Vault With 11x USDe Leverage on Aave</a> appeared first on <a href="https://blockonomi.com" rel="noopener noreferrer nofollow">Blockonomi</a>.</p>

Ethena Pay Launches Earn+ Vault With 11x USDe Leverage on Aave

Table of Contents

Blockonomi

Other articles published on Oct 29, 2026

Join our free newsletter for daily crypto updates!