According to PANews via DL News, Chaos Labs warns that rising USDe deposits and Ethena’s $580M rehypothecation could trigger liquidity issues at Aave amid its dual role in redemption and liquidity.
On August 5, PANews reported via DL News that Chaos Labs, Aave's risk advisory firm, warned on the Aave governance forum that increasing USDe deposits could threaten Aave’s stability. Ethena’s rehypothecation strategy, involving a $580M deposit in USDe-backing assets, coincides with Aave holding $4.7B in USDe-backed assets (including PT and sUSDe, over 55% of total supply), raising concerns over liquidity during deleveraging events. Chaos Labs is developing risk prediction tools to adjust rates during market stress.