Ethena Pay’s 11x leverage loop promises high yield, but risks hidden losses

Ethena Pay’s new Earn+ vault design pairs USDe collateral with USDT borrowing, creating a potential gap between the value a lending protocol reports and the money a user could recover. The app’s Oct. 28 launch disclosure describes a strategy targeting roughly 11 times leverage whose USDe oracle follows USDT. If USDe falls against USDT, the two measures can diverge. A price reference that follows the debt token can miss the collateral’s discount, leaving reported collateral health insensitive to a market move that reduces the value remaining after debt repayment. Earn+ is an external vault service run by Upshift and Steakhouse through Aave v4 on Avalanche. Ethena Pay supplies the interface and advertises up to 12% APY. An oracle supplies the prices a lending protocol uses to value collateral and debt.

BeCrypto News shows a short excerpt and links to the publisher. The full report belongs to CryptoSlate.