Lead · Project Encyclopedia
USDe's 10%+ annualized yield isn't air — it comes from crypto derivatives markets' funding rates (longs pay shorts). But in bear markets, funding rates can go negative, and sUSDe yields may approach 0 or even turn negative. Understanding the source lets you evaluate whether the risk is worth taking.
Mei Yoshida
·
July 03, 2026
When you see a protocol in DeFi offering '10%+ annualized yield on stablecoins,' your first question should be: where does this yield come from? Without a credible source, high yield is either a subsidy (eventually stops) or a higher hidden risk. Ethena's USDe was one of DeFi's fastest-growing yield stablecoins from 2024–2026, peaking above 25% annualized and currently stabilizing at 10–15%....