Aave has activated USDe rewards distribution through its dedicated Ethena ecosystem market on Ethereum via the Aave V4 protocol. This integration deepens the partnership between the two protocols as USDe supply has surpassed $12 billion, fueled by recursive borrowing strategies known as Aavethena. The deployment includes two Spokes supporting USDe, sUSDe, PT-sUSDe, and PT-USDe as collateral assets. At its peak, Aave represented over 50% of total USDe supply, making it the single most important liquidity venue for Ethena Labs flagship asset. The new Liquid Leverage feature enables 50/50 USDe and sUSDe deposits, reducing cooldown periods for users.
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