What is USDe?

Ethena Pay: a Revolut-modeled mobile app using passkey wallets, USDe savings at 6%, AVAX cashback (Avalanche-funded for roughly two years), and a Visa card with no crypto on-ramp friction.

“To us it was just kind of basically modeled off of the revolute design of like user flows coming in and out rather than starting from the position of saying this is a crypto app. how do we bring it to normal people?”

Ethena Pay's card mechanic explained: spending triggers a one-step USDe-to-USDC redemption that settles with Visa, with no lending or leverage against the underlying USDe.

“Mechanically it's basically just a one-step kind of redemption process before it hits Visa but there's no kind of lending or leverage against USD in the process.”

USDe processed roughly $30 billion in mint and redemption flows, with supply peaking near $15 billion, across two major stress events (Binance 1010 deleveraging and the Ave Kelp incident).

“There's been around like $30 billion of mint and redemption flows within USD peaked at around $15 billion and then we went through the Binance 1010 you know deleveraging event that we saw at the back end of last year and then the Ave kelp incident that was you know in Q2 of this year. In many ways, this is like some of the most testing periods you could have ever gone through with a product like this where people would have expected something to go wrong and nothing did go wrong with like 30 bill of flows coming in and out.”

Robinhood Earn is using Morpho with USDe as collateral, signaling mainstream fintech adoption of DeFi lending primitives.

“They're essentially doing the same thing, which is plugging into a Morco bolt with USD that's sitting within the collateral.”

USDe's risk profile has actually become safer over time, not riskier, as its backing has shifted toward secured real-world asset lending within qualified custodians, contrary to the common assumption that complexity grows with scale.

“The risk profile has changed quite a bit through time and the composition of what we do within USD I would actually argue has become like safer through time rather than more risky which is kind of more slanted to world towards real world assets lending in a secured way you know within qualified custodians etc.”

Ethena USDe accounts for roughly 40% of all stablecoins on Robinhood Chain, driven by the chain's lending and earning pools.

“They have this I think the USD is now like 40% of the stable coins on Robin Hood chain and that's because of the you know the lending pool and the earning pool that they have there.”

Ethena USDe is emerging as the dominant stablecoin on Robinhood Chain with 40% market share, positioning Ethena as a key DeFi infrastructure layer within regulated retail crypto venues.

“They have this I think the USD is now like 40% of the stable coins on Robin Hood chain and that's because of the you know the lending pool and the earning pool that they have there.”