Ethena's USDe Total Value Locked Drops 50% to $7.6 Billion as Yield Falls to 5.1%

Ethena's USDe stablecoin saw total value locked decline from $14.8 billion in October to $7.6 billion, a contraction exceeding 50%. The drawdown occurred as annual percentage yields compressed to approximately 5.1%, falling below the 5.4% cost of borrowing USDC on Aave. The shift triggered unwinding of leveraged carry-trade positions that had previously driven growth.