Ethena Liquid Leverage
Ethena’s Liquid Leverage allows users to deposit 50% sUSDe and 50% USDe into Aave and earn promotional rewards for USDe in addition to the normal USDe lending rate and sUSDe's native APY.
To become eligible for Liquid Leverage rewards for USDe deposits, users must:
Supply a roughly 50/50 split of USDe and sUSDe as collateral. The 50/50 split is in regards to the dollar value, not the actual amount of USDe and sUSDe
Be borrowing USDC, USDT, or USDS
Complete looping the position at least once
We've been notified by the Ethena team that the split doesn't have to be exactly 50/50 - a small deviation in percentage is allowed.
It's not mandatory that the steps are followed in chronological order, since the main factor is that the resulting position meets all the criteria.
With that in mind, DeFi Saver has created a zap that achieves this in a single transaction, where users can enter with either USDe or sUSDe as collateral:
Show me how:
The first step is to navigate to the Trending page on the left-hand sidebar:
From there, click on the zap for Liquid Leverage, which will open a pop-up window:
In this pop-up window, you'll be able to:
Select which token you'd like to start the leveraging with
Input the amount you'd like to leverage
Set the leverage amount
Choose the debt asset
Set the slippage limit
On the right-hand side, you'll see a preview of your position, along with important metrics such as the estimated trade size impact, and swap rates.
When everything looks good with the setup, click on "Create".
Once successful, you'll now be able to access your Aave Liquid Leverage position by opening it from the Portfolio page, or opening the Aave dashboard on DeFi Saver.
Since your position will be on a Safe smart wallet, you'll be able to view your position and assets on other apps by connecting your Safe to them.
Liquid Leverage also addresses the 7-day unstaking cooldown issue for sUSDe users. By maintaining at least half the position in USDe and employing leverage, it creates a loop that keeps a portion of the funds liquid, free from the 7-day cooldown constraint.
For more information on Ethena Liquid Leverage, please refer to the following Knowledge Base articles:
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