First, we need to be clear that the USDe in lending does not enjoy the 12% yield, so using USDe for circular lending arbitrage is incorrect.

“Rewards are calculated based on the lowest daily balance of USDe across Spot, Funding, and Margin accounts, including USDe staked in Binance Earn products. USDe used as collateral in Borrow or Futures positions is not eligible for this promotion.”

The normal logic of circular lending is that if you have $100,000 in USDe and you want to enjoy more of the 12% airdrop for USDe, you need to increase your USDe position, right? So how do you increase your position? Some friends might say, I will borrow $100,000 in USDe, take out $70,000 in USDT, and then exchange it for USDe, which gives me a limit of $170,000 in USDe. Is this correct?

Logically, it is correct, but in practice, it is wrong because the USDe in lending does not enjoy the 12% yield. Therefore, the $100,000 USDe placed in the lending market does not generate any yield; the yield comes from the $70,000 USDT that is borrowed and exchanged for $70,000 USDe.

When you calculate it this way, isn’t the yield lower? That’s why I say that circular lending based on USDe itself is incorrect because there is no yield, so USDe should not be used as a lending asset.

But what if you don’t have USDe but have assets like $BTC, $ETH, and $SOL? Many people will consider lending, where the lending fees for WBETH and BNSOL are actually only 2.26%, which should be the lowest. However, the lending assets themselves do not support USDe, meaning that you mostly borrow USDT or USDC, and then use USDT or USDC to buy USDe (there are no fees for this on Binance), which sets the stage for a potential crisis.

When ETH and SOL drop, WBETH and BNSOL also drop, leading users to reconsider the interest on USDe and quickly exchange USDe back to USDT or USDC to repay their lending positions, successfully redeeming WBETH and BNSOL. The problem is that USDT/USDe and USDC/USDe both have depth; they are not an endless 1:1 exchange.

This is the exchange rate difference, starting from 0.9999 and dropping to 0.68 because a large number of investors want to sell USDe to exchange back for USDT or USDC to reduce their lending losses. Thus, USDe is sold off in large quantities in a short time, leading to insufficient depth, causing USDe to de-peg.

So what happens to the insufficient USDe? Naturally, your staked WBETH and BNSOL will be liquidated. This liquidation is directly sold into the market at the current spot price, which will cause the price to continue to drop, as it also affects depth, resulting in pressure from the spot market for BNSOL and WBETH. Since USDe cannot be used for circular lending, I say that USDe may not be the main reason; the main reason is the circular lending of BNSOL and WBETH.

This article is sponsored by #Bitget ｜ @Bitget_zh

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。