Data: USDe TVL has sharply contracted by over 50%, and DeFi protocols have seen a surge of leveraged loop strategy Close Position.

According to ChainCatcher news and reported by The Block, the total lock-up value (TVL) of Ethena's synthetic stablecoin USDe has fallen from 14.8 billion USD in October to its current value of 7.6 billion USD, a decline of over 50%. The main reason for the sharp decline is the liquidation of a large number of leveraged loop strategies that have emerged in DeFi protocols (especially lending markets like Aave). Currently, the yield of USDe (around 5.1%) has fallen below the borrowing cost of 5.4% for USDC on AAVE, leading to some participants closing their positions. Reports indicate that despite the decline in TVL, the usage of USDe is on the rise, with chain transaction volume exceeding 50 billion USD last month, which shows that even speculative positions are gradually being unwound.