By our calculations, $1.33B out of $4.4B of USDe's backing is lending against itself.
Here’s the rule we used:
Estimated self-lending = gross borrowing against USDe/sUSDe collateral × Ethena’s share of supplied liquidity in that market
So if a pool has $556M borrowed against USDe/sUSDe, but @ethena supplies 47.4% of the liquidity, we attribute ~$263M of that as Ethena-funded self-lending.
We’re not counting the full amount borrowed against USDe/sUSDe as “self-lending” where @ethena is not the only lender.
Using this pro-rata method, we get:
- Estimated Ethena self-lending: ~$1.33B
- Gross amount borrowed against Ethena assets: ~$1.67B
- Difference from pro-rata attribution: ~$336M
Sources of data:
AAVE: https://t.co/zeU9yvlXvY
Steakhouse USDtb: https://t.co/SpF5M5fcab
Steakhouse Prime: https://t.co/M63p1PVYV6
Kamino: https://t.co/opd9knbVcf
Juplend: https://t.co/RmdBd58Xz3
Backing: https://t.co/RrxbDYxemJ
@ncerovac Good decision.
It could set a bad precedent in the future and lead to unfavorable legislation regarding L2s.
But it was a necessary sacrifice today, especially given the position L2s are currently in.
@Wajahat@JamesChristoph I think James meant that most of these projects have tokens, but they’re basically memes with no claim on profits. A few are trying to return value to holders and show alignment, but they’re not earning much in this market so token valuations still look inflated.
@philgg93@0xGeeGee You may be right, and I suspect it will ultimately be up to lawyers and the courts to decide. However, I still believe it sets a bad precedent, with direct implications for the money markets and the entire vault ecosystem.
Definitely not worth it. These kinds of strategies only make sense if the yield is very high or if there’s a potential outsized return from an airdrop you’re bullish on.
Right now, I’d say the r/r is much better if you just naked long with part of your PF rather than farming 20% fullport while taking exposure to USD1, Dolo, and compounded SC risk.
To evade sanctions, Moldovan fugitive oligarch Ilan Shor founded the cryptocurrency company A7 at the end of 2024. In June, Financial Times reported that A7A5, the first ruble-pegged stablecoin officially launched in Kyrgyzstan, had sold over 9 billion dollars. A7 claims it processed nearly 98 billion dollars in transactions in its first six months. By December last year, A7 handled about 19 percent of Russian companies' foreign trade operations. The company issued digital and gold-backed promissory notes and prints its own banknotes for cash trading, with denominations up to roughly 5,000 dollars, promoted on Telegram for Russian tourists. Abroad users scratch off a silver film to reveal a QR code, send it to a Telegram bot, and an agent delivers cash in person, currently only in dirhams in Dubai or dollars in Istanbul. Transaction flows have been detected in China, Southeast Asia and Southern Africa.
@rodeo_crypro I agree, but I don't think it was entirely their fault. We all played stupid games and got stupid outcomes, at the delight of cex-es and early investors.
@rodeo_crypro Near, Arbitrum, Starknet, ZkSync are still trying, shipping stuff. Midas team is also trying and they didn't launch a token just to extract
Moonwell's history of exploits:
10.10.2025:
Chainlink’s oracle feeds priced AERO, VIRTUAL, and MORPHO lower compared to the DEX pool prices on Base. An attacker repeatedly flashloaned USDC/cbBTC, borrowed underpriced assets from Moonwell at 85-88% LTV, sold them on a DEX for more than the value of their flash loan, repaid the flash loan, and profited from the difference.
While 10.10 was an unprecedented event, you clearly shouldn’t be able to borrow such volatile tokens at 85-88% LTV. Ended up with >$12M in liquidations, $1.7M in bad debt.
Incident Summary: https://t.co/fgAsIA8Qis
04.11.2025:
The wrsETH market priced collateral as (wrsETH/ETH) * (ETH/USD) using Chainlink feeds. The wrsETH/ETH oracle was based on market prices, not the exchange rate. Balancer, back then a source of most of the liquidity for rsETH got exploited a day earlier, and was likely the cause of the feed outputting an absurd value: 1 wrsETH = 1,649,934.60732 ETH.
Same attacker as 10.10.2025, although we haven’t seen any evidence of them actually manipulating the oracle - only taking advantage of the mispricing. They’re clearly constantly scanning Moonwell for extractable value. $3.7M of bad debt.
Incident Summary: https://t.co/i8kOb0R4i0
Discussion around the oracle's failure: https://t.co/qE0FmjZlEF
15.02.2026:
Another badly configured oracle feed. cbETH’s price was set to cbETH/ETH ($1.12) instead of (cbETH/ETH) * (ETH/USD). 1096 cbETH liquidated, $1.78M of bad debt. The worst part is that the exact commit that caused the mispricing was co-authored by Claude: https://t.co/Aq6y8OUsFl
The PR: https://t.co/2JoDYcjtMj
Incident Summary: https://t.co/XqarkEzxDV
Moonwell is not a serious lending market. They have failed too many times with their oracle setups.
Do. Not. Use. It.
@0xmjt Fair, but with ~3.5% base funding (like Lighter recently introduced), retail gamblers flowing into markets globally, and certain markets staying hot and volatile for months, equity perps might actually become interesting. I’m cautiously bullish on them, but it will take time.
@0xmjt Alt frontends/builder code might fix this. Onramping via apps like Dreamcash is supposedly easy. Still hard to see a world where they don’t get sued into oblivion.
Equity perps are interesting, but they’ll face an uphill battle vs Robinhood's of the world.