[Total Locked Value of USDe Drops to $7.6 Billion, Down Over 50% Compared to October] The total locked value (TVL) of Ethena's synthetic stablecoin USDe has decreased from $14.8 billion in October to the current $7.6 billion, a drop of over 50%. Weak market conditions and reduced leverage demand have led to compressed perpetual funding rates, with USDe's annualized yield currently around 5.1%, down from double-digit levels at the beginning of the year. The significant decline in TVL is primarily due to the unwinding of leverage loop strategies in DeFi protocols, particularly in lending markets like Aave. As USDe's yield fell below the 5.4% cost of borrowing USDC on Aave, some arbitrage trades were closed. Nevertheless, USDe's usage continues to grow, with on-chain transaction volume exceeding $50 billion last month.