Ethena Staked USDe (sUSDe)

This week's best risk-adjusted farms:

1) USD3/sUSDe — 11% APY
↳ @ConvexFinance boosted Curve pool
↳ USD3 by @reserveprotocol, sUSDe by @ethena_labs
↳ 2.27x veCRV boost — no lock needed
↳ 7.59% in CRV rewards on top of base fees

2) Balancer rETH/WETH — 6.86% APY
↳ @Balancer on Arbitrum
↳ rETH by @Rocketpool, WETH earns passive Aave yield
↳ 5.16% in RPL incentives on top
↳ Low IL — both assets track ETH

Full breakdown + more farms in the letter:
https://t.co/20X3tJVQ9w

https://t.co/qQDm5rCxcb

There's a big stablecoin liquidity rotation happening.

@ethena has been losing capital all week:

→ sUSDe TVL down 5.6% (~$114M)
→ Yield dropped from 5.14% in December to 3.56% today

The issue?

Ethena's yield comes from funding rates in perp markets. When demand for leveraged longs drops, funding falls.

Lower funding = lower yield.

That capital is most likely rotating into @maplefinance, @SkyEcosystem, and @aave, since they all had double-digit TVL growth this week.

These protocols generate yield from lending, not trading activity. Returns are more stable and less tied to perp market conditions.

Personally, I'll take boring, safe yield over one that depends on market activity any day of the week.