Aave V4 begins paying USDe rewards through dedicated Ethena market

Aave has begun paying USDe rewards through the dedicated Ethena market in its V4 protocol on the Ethereum mainnet. The DeFi lending platform said Aave V4 has built two dedicated Spokes environments that support major synthetic assets, including USDe and sUSDe, as collateral. Through the setup, users can deposit and borrow USDe to run looping strategies aimed at maximizing yield. Backed by Aave’s lending infrastructure, supply of USDe, a delta-neutral synthetic dollar, has recently surpassed $12 billion, and at peak times Aave has served as a key liquidity venue supporting more than 50% of total USDe supply. It added that the "liquid leverage" feature introduced in V4 reduces sUSDe unstaking wait times and improves liquidity, while whitelist-based safeguards have also been applied to address risks tied to large-scale redemptions.