The new proposal to peg the price of USDe to USDT has faced strong opposition from community members. The proposal was jointly presented by Chaos Labs and LlamaRisk, aiming to protect Aave users from secondary market fluctuations by hard-coding the price of USDe to USDT.
Aave is one of the largest decentralized finance (DeFi) lending platforms, with a total locked value (TVL) of $37 billion.
Ethena's USDe is a synthetic stablecoin supported by on-chain assets and derivatives. The difference between USDe and USDT is that the latter is backed by fiat reserves. USDe currently ranks as the third largest stablecoin by market cap at $5.85 billion, following USDT and USDC.
Proposal Details
Aave uses Chainlink's USDe/USD price oracle to assess the value of staked USDe (sUSDe, the staked version of the stablecoin). This setup exposes sUSDe-backed positions to the risk of price deviation in the secondary market for USDe. The proposal indicates that the likelihood of this situation occurring is low, but if it does, it could pose liquidation risks for users and the protocol.
The proposal also states that a 5% drop in the price of USDe could put over $300 million in USDe loans on Aave at risk. It could also trigger the liquidation of collateral debts to repay outstanding debts.
To eliminate these risks, the authors propose an improved pricing model. They suggest replacing the USDe/USD secondary market price source with a USDT/USD price source. The proposal indicates that decoupling the stablecoin from its short-term volatility will reduce the liquidation risk for all positions backed by USDe.
"To mitigate the risks brought by USDe depegging events, we propose to hard-code the price of USDe to USDT," the proposal states.
Community Opposition
Aave users have expressed opposition to the proposal, with most questioning whether this approach can address the fundamental risks. One user, Hazbobo, pointed out that hard-coding USDe to USDT is risky because it is not designed to be a stablecoin, and inquired about the potential risks.
Another user, ElliottNess, stated that the proposal does not address the risk factors. "This is a disappointing ARFC from two service providers, yet it fails to delve into any potential conflicts... frankly, every non-hard-coded asset listed on the Aave protocol can be said to be the same," the user said.
ElliottNess questioned the reason for pegging USDe to USDT and pointed out that if Aave genuinely wants to hard-code USDe, it should peg it directly to $1 to completely avoid deviation.
Current Status
Currently, the proposal is still in its early stages and voting has not yet begun. Aave has performed well in the market, rising 7% in the past 24 hours, with a trading price of $340.
Ethena Update
After releasing its roadmap for 2025, Ethena's token price rose by 17%. This year, the platform plans to collaborate with social media giant Telegram to launch new dollar savings products. The roadmap also announced a wrapped version of sUSDe, iUSDe, which will offer a 10% yield. Ethena plans to integrate sUSDe into the Telegram platform, hoping to benefit from Telegram's 900 million users. The platform will provide a new banking experience within Telegram by offering payment and savings applications.
$AAVE
#AAVE.智能策略库🏆🏆 #AAVE #AAVEUSDT.P #AaveProtocol #AAVE.24小时交易策略
