Borrowing USDe on Aave to convert into sUSDe and stake it became unprofitable from Sept. 9, 2026, after a governance recommendation raised USDe’s base variable borrow rate from 5% to 6%. Borrow rates across the affected markets reached 6.02% to 6.39%, above the cited 5.01% staking yield, creating negative carry before incentives, transaction costs and other frictions. The change followed LlamaRisk’s recommendation covering Aave V3’s Core, Plasma, Monad, Mantle and Avalanche markets, where USDe debt totaled about $323.8 million against $1.18 billion supplied. The recommendation also called for reducing Slope1 by one percentage point, partially offsetting the base-rate increase depending on utilization. Earlier modeling estimated borrower APR increases of 13 to 89 basis points, with the changes intended to reduce leveraged sUSDe loops. TokenLogic said unwinding those positions could raise the yield available to remaining sUSDe holders toward 5.3%.