Simple Summary

This proposal aims to add USDe as collateral to the existing sUSDe/Stablecoins emode category to improve capital efficiency and provide a more cohesive borrowing experience for users of Ethena assets on Aave.

Motivation

Currently, the sUSDe (Ethena Synthetic USD) has its own e-mode category in Aave, allowing for optimized borrowing for this specific asset. However, USDe, the native stablecoin from Ethena, is not included in this same e-mode category despite being the underlying asset for sUSDe.

Rationale

• USDe and sUSDe are intrinsically linked, with sUSDe being the staked version of USDe
• Both assets have similar risk profiles and high correlation
• Adding USDe as collateral to the same e-mode category would allow users to add USDe exposure while maintaining their leverage.
• This change would allow borrowers to use either asset as collateral more effectively

Specification

USDe will be added as collateral to the sUSDe stablecoin emode (id:2)

References

• Implementation: AaveV3Ethereum
• Tests: AaveV3Ethereum
• Snapshot: Direct-to-AIP
• Discussion

Copyright

Copyright and related rights waived via CC0.