Ethena USDe Supply Slips $157M As Binance Funding Turns Negative

Ethena USDe supply fell from $4.98 billion on October 7 to $4.82 billion on October 9, according to DefiLlama's stablecoin data. That is about $157 million in two days. Ethena's own transparency dashboard shows a supply of $4.81 billion against total backing of $4.88 billion. The dip lines up with several negative funding prints on Binance, which matters for a coin whose yield comes from funding.

Ethena's transparency dashboard on October 9, with a backing ratio of 101.35% and a USDe price of $0.9993.

What the Ethena USDe numbers show on backing

Backing exceeds supply by about $69 million, which is the 101.35% ratio in the screenshot. USDe trades at $0.9993, so the peg is holding while supply falls. At its peak USDe was near $14.8 billion on DefiLlama, so today's $4.8 billion is about a third of that. A month ago it was about $4.4 billion, which makes the last 30 days a net gain of 8.6% even after this dip.

By chain, Ethereum carries $2.56 billion of USDe, down from $2.73 billion three daily points earlier. That is a $167 million slide, or about 6%. Solana slipped from $504 million to $495 million. Monad moved the other way, from $68 million to $99 million, so some supply is shifting between networks and not only leaving.

Funding turned negative on Binance

Ethena earns carry by holding spot collateral against short perpetual futures. Funding rates therefore feed directly into what Ethena USDe holders can earn. Binance's funding history for ETHUSDT shows five negative prints in four days. Dates run from October 6 to October 9, with two of them back to back on October 7. The BTCUSDT rate was negative on seven of 13 prints from October 5.

A short pays funding when the rate goes below zero, so that stretch worked against hedged positions. Ethena also trades on other venues and holds other backing assets, so Binance alone does not set its yield.

Ethena USDe yield on offer

Ethena's yield endpoint, last updated October 7, put the staking yield at 4.75% and the protocol yield at 4.82%. The 30-day average for staking stood at 4.81% and the 90-day average at 4.44%. The page header shows 4.7% APY on October 9. The yield averaged over the whole life of sUSDe is 10.38%, so today's rate is less than half of that.

Those figures predate most of the negative prints, so the next update is the one to watch. If the next reading is lower, Ethena USDe holders will see it in the staking yield first, and in how much supply stays, later.

Reading the supply dip

Two days do not make a trend, but the size of the Ethena USDe move stands out. Of all the two-day windows in DefiLlama's last 60 days of data, this is the biggest decline, ahead of a $74 million drop ending October 8. The biggest two-day gains were $144 million on September 12 and $139 million on September 2. This report describes published data and offers no investment advice on USDe or sUSDe.