The Aave community recently initiated a new ARFC proposal, suggesting to hardcode the price of Ethena's USDe to match the USDT in Aave's price feed.
The proposal was co-written by Chaos Labs and LlamaRisk and submitted on January 3, aiming to protect Aave users from secondary market volatility. Notably, LlamaRisk is a member of the Ethena Risk Committee. The proposal states: "By linking the value of USDe directly to USDT, we align the sUSDe oracle with USDT pricing, ensuring seamless integration and avoiding disruptions caused by temporary fluctuations in USDe price."

Aave currently uses Chainlink's USDe/USD price information to evaluate staked USDe (sUSDe), which is the staked version of USDe.
Previous reports indicated that
According to the proposal, a 5% drop in USDe price or over $300 million in USDe-backed loans on Aave could face liquidation risks, potentially triggering collateral sell-offs to repay outstanding debts. The proposal states: "To mitigate the risks associated with a USDe depegging event, we recommend hardcoding the price of USDe to USDT."

The proposal has raised skepticism among Aave users, who question whether the approach addresses the fundamental risks. "Given that USDe is not truly intended to be a stablecoin, hardcoding the USDe price to USDT sounds a bit risky," user Hazbobo pointed out. "What are the extreme scenario risks involved? What is the worst-case scenario?"
Another community member, ElliotNess, criticized the proposal for failing to address potential risk factors: "This is a disappointing low-quality ARFC from two service providers, without delving into any potential conflicts... Frankly, every non-hardcoded asset listed on the Aave protocol could be said to be the same."
ElliotNess questioned the rationale behind pegging USDe to USDT and suggested that if Aave plans to hardcode the price of USDe, it might be better to directly peg it to $1.00 to completely avoid secondary market price deviations.
The proposal is in the early discussion phase and has not yet opened for formal voting. (Cointelegraph)
Guy Young, founder of Ethena Labs, posted a photo discussing with Aave founder Stani on X, stating: "Aavethena is a great proof of concept, Arcthena will scale DeFi by 10 times."
In response, a user inquired about the related timeline, and Guy's answer was within 1-3 months.

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