In this post: aave's new proposal to hard-code USDT USDe prices has met with opposition from community members.
The authors of the proposal, Chaos Labs and LlamaRisk, explain why hard coding is important for USDe in As the 2025 Efirium roadmap is published, community users are questioning the riskiness of the proposal.
USDe Etherium price on Aave's price channel for stablecoin Tether. A new proposal to hard-code the USDe price to #USDT has received a great response from community users. The proposal, created by Chaos Labs and LlamaRisk, aims to protect #Aave users from secondary market volatility.
According to the proposal, Chaos Labs and LlamaRisk, who are members of Ethena's risk committee, want to harmonize Oracle's pricing of SUSDe and USDT. This will ensure seamless integration and eliminate the confusion caused by temporary price fluctuations in USDe.
The platform allows users to lend and borrow #cryptocurrency without the need for an intermediary. Users can borrow from Aave, pledge cryptocurrency as collateral, or place funds in Aave's liquidity pool at interest rates.
USDe is a synthetic stealthcoin backed by assets and derivatives on the blockchain; the difference between USDe and USDT is that the latter is backed by fiat reserves; the market value of USDe is currently $5.85 billion, while USDT and USDC According to the proposal
, Aave will use Chainlink's USDe/USD price feed to determine the value of USDe (sUSDe is a stealthcoin). This arrangement will allow positions backed by sUSDe to reject the price of USDe in the secondary market. The proposal notes that volatility is unlikely to be caused by such a scheme, but if it were to occur, it would create liquidation risk for users and the protocol.
The proposal also notes that if the price of USDe falls by 5%, Aave's USDe-backed loans of more than $300 million could be jeopardized, the proposal says. This could also lead to the sale of collateral assets that would have been used to repay the debt.
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