Chaos Labs has raised concerns regarding the risks associated with USDe as the Pendle looping trade expands Ethena’s Aave footprint to $6.6 billion. They highlighted potential reflexive growth and rapid deleveraging, urging self-limits on USDe’s reserves deployed into Aave to mitigate volatility during market contractions.
aave ✓
ethena ✓
+ usde
chaos-labs ✓
defi ✓