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Stress Testing

Loop liquidation risk and redemption cascade scenarios against live tier liquidity.

Loop Controls

Models an outside actor borrowing against USDe or sUSDe collateral on the selected venue. Does not change Ethena's own lending balance.

Liquidation cliff = USDe/sUSDe price decline before the loop is wiped. Loop liquidations add sell pressure on the same venue where Ethena lends.

Loop Results

Leverage multiplier

3.29Ă—

Modeled loop USDe demand

$164.40M

New Aave utilization

61.44%

Est. USDe/sUSDe price decline to liquidation

19.08%

Third-Party USDe Demand per Loop Iteration

Each bar shows new USDe posted as collateral in one recycle step of the modeled loop.