Ethena Pay launched Earn+, aiming for rewards of up to 12%

Ethena Pay has begun rolling out the Earn+ feature, which claims that the dollar balance can earn a target annual reward of up to 12%. Initially, it is open to Pro and VIP users, with plans to expand to all users in the coming days. This feature will transfer funds from the main payment balance to an external Upshift vault, where Steakhouse Financial will execute a leveraged USDe strategy on Aave, aiming for a yield higher than the app's existing maximum tiered reward of 6%.

According to documents released by Ethena Pay, the vault targets approximately 11 times leverage on Aave v4 on Avalanche, packaging repeated borrowing and reinvestment into a one-click deposit. The specific path involves depositing USDe as collateral, borrowing USDT, and then using the borrowed tokens to purchase more USDe in a loop, with returns depending on whether the USDe rewards can cover the USDT borrowing costs. Ethena Pay states that it only provides the interface and does not guarantee the assets, and users must bear the risk of vault losses, which may result in losing part or all of their invested funds.

Ethena Pay claims that the simplified interface does not eliminate liquidation risk; when collateral is insufficient to cover debts, positions will face liquidation, with liquidators repaying debts and taking collateral and rewards. The 12% is only a target and not a guaranteed return, rates may be adjusted downwards, and Earn+ balances do not enjoy the Daily Boost of the main account. This product has no lock-up period, no fees for deposits or withdrawals, and withdrawals are processed to the main dollar account within 24 hours but may be delayed, and are not considered insured bank deposits. The initial total capacity limit for the vault is $4.5 million, with individual limits of $50,000 and $200,000 for Pro and VIP users, respectively, and $20,000 for Standard users.