According to PANews, Ethena's blog has hinted at the upcoming end of its point activities, with the current implied APY on Pendle for USDe reaching a staggering 170%. This article aims to help readers understand how to properly participate in Ethena's point activities before they end.
Ethena offers two token products: sUSDe, which enjoys native interest with its exchange rate growing over time, and USDe, which is interest-free and used for liquidity in DeFi combinations. The underlying assets of USDe provide higher returns for sUSDe, and points are mainly given for this purpose. Users can only exchange USDe with USDC/USDT through DEX, so there is a small loss when entering and exiting.
Ethena Labs offers various types of point mining with different multipliers. The following are recommended strategies for different yield and liquidity needs:
1. Zircuit+USDe - This option offers the highest returns without an unlocking period and has a quota. By depositing USDe into ZircuitL2, users can get 7 times the points and Zircuit points, which can be unlocked instantly.
2. Locking USDe - This option has the largest quota, with moderate returns and liquidity. Users can directly lock USDe to get 10 times the points, with a 7-day unlocking period and a large remaining quota.
3. Locking Curve USDe LP - This option offers high returns but has the worst liquidity and a small quota. Locking the LP displayed on the Ethena liquidity page can yield 15 times the points, but it requires a 21-day unlocking period with no returns during that time. As the point activities are about to end, the opportunity cost is high, and the current quota is almost full.
4. Holding sUSDe - This option offers high native returns in U denomination but has low point returns. Users can get up to 67% native returns, but unlocking takes 7 days, and liquidity is average. Users can also sell at a discount through DEX.
5. Pendle/Gearbox USDe - These options theoretically offer high returns but have no quota. Pendle allows users to leverage YT for 200 times the points, but the quota is full. Gearbox allows users to cycle borrow USDe for up to 90 times the points, but the quota is scarce and borrowing costs must be considered. Both options have a significant probability of losing money and are only recommended for professionals who understand the mechanisms.
Other strategies offer either higher liquidity without higher returns or higher returns without better liquidity compared to the above options. Users can adapt the above strategies according to their liquidity needs.
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