Aave V4 and Ethena have launched USDe rewards in a dedicated Ethena ecosystem market on Ethereum. The deployment uses two isolated Spokes supporting USDe, sUSDe, PT-sUSDe and PT-USDe, allowing users to supply eligible assets, borrow supported stablecoins and redeploy funds through recursive strategies known as Aavethena. Aave V4’s Liquid Leverage feature supports roughly 50/50 USDe and sUSDe allocations, while sUSDe remains subject to its normal unstaking mechanics. The Aave incentives are separate from USDe’s underlying return, which can change with crypto funding rates, and leveraged positions remain exposed to borrowing costs, collateral requirements and liquidation risk. USDe supply has recently exceeded $12 billion, while Aave has supported more than 50% of total USDe supply during peak periods. Ethena has also expanded USDe’s use cases through Ethena Pay and an initiative involving BlackRock’s BUIDL fund, though both developments are separate from the new lending market.