Ethena Pay’s 11x leverage loop promises high yield, but risks hidden losses
Ethena Pay’s Earn+ vault uses USDe collateral to borrow USDT through an Upshift- and Steakhouse-run strategy on Aave v4 on Avalanche, targeting roughly 11× leverage and advertising up to 12% APY. Aave Labs warned that the USDe oracle tracks USDT, so a USDe-specific discount could reduce the collateral’s real exit value without lowering its oracle-reported value or health factor. A hypothetical model illustrates how leverage can magnify losses, but the vault’s actual positions, oracle wiring, fees, yield sources, risk controls and withdrawal liquidity remain unverified. Borrowing costs and exit delays may further affect returns. Ethena Pay describes withdrawals as processed within 24 hours, while noting they can take longer; outcomes depend on leverage, manager actions and available liquidity.
