Ethena Labs explains the significant reduction in sUSDe APY: To ensure a slow and controlled product rollout

The decentralized stablecoin project Ethena Labs e xplained on the X platform why the annual yield of sUSDe has significantly decreased. According to data disclosed by Ethena Labs, the generated APY for sUSDe is 44.3%, but the paid APY for sUSDe is only 15.2%. Ethena Labs stated that reducing sUSDe payments was done to ensure a slow and controlled product rollout, so as to be prepared during protocol development. The reserved USDe will be held by the protocol and distributed to holders later.

 

Ethena Labs said that APY changes over time without guarantee and could even fall below zero when there's excessive leverage demand in the system for long positions in cryptocurrencies, resulting in high yields. Like any interest rate, this is just a manifestation of capital supply-demand imbalance within the system. In addition, Ethena Labs also published on-chain transaction receipts, sharing detailed information about calculating APY with their community to ensure transparency.