Since the first parameter change on August 28, the USDe base rate has moved to 5.00%, and Slope 1 has been reduced to 2.00% on Ethereum Core and Avalanche and to 3.00% on Mantle, Monad, and Plasma. The Ethereum Core book has responded as projected.
As set out in the proposal, the 5.25% base rate linked the borrow cost to Ethena’s staking rate at the time, after accounting for Aave’s reserve factor. The staking rate has since risen to 4.75%, in line with the uplift expected as loop-funded positions unwound, and the same methodology now reflects a base rate of roughly 6.30%. Accordingly, we are revising the target for the next change; because it follows the staking rate, we will reassess it each following week.
We therefore recommend continuing the sequence at the same cadence, with 100 bps base increases and 100 bps Slope 1 reductions per action, to a 6.30% base and a 0.25% Slope 1 on all five instances. The next round:
USDe base
| Chain | Market | Reserve | Parameter | Current Value | Recommended Value |
|---|---|---|---|---|---|
| Avalanche | - | USDe | Base | 5.00% | 6.00% |
| Ethereum | Core | USDe | Base | 5.00% | 6.00% |
| Mantle | - | USDe | Base | 5.00% | 6.00% |
| Monad | - | USDe | Base | 5.00% | 6.00% |
| Plasma | - | USDe | Base | 5.00% | 6.00% |
USDe Slope 1
| Chain | Market | Reserve | Parameter | Current Value | Recommended Value |
|---|---|---|---|---|---|
| Avalanche | - | USDe | Slope 1 | 2.00% | 1.00% |
| Ethereum | Core | USDe | Slope 1 | 2.00% | 1.00% |
| Mantle | - | USDe | Slope 1 | 3.00% | 2.00% |
| Monad | - | USDe | Slope 1 | 3.00% | 2.00% |
| Plasma | - | USDe | Slope 1 | 3.00% | 2.00% |
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