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Borrowing USDe to stake sUSDe now costs more than the yield, ending profitable leverage loops on Aave.

Market News
11 Sep 2026
CryptoTicker
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Bearish
Borrowing USDe to stake sUSDe now costs more than the yield, ending profitable leverage loops on Aave.

Since September 9, 2026, borrowing USDe to convert into sUSDe and stake it on Aave has become unprofitable, as borrow rates (6.02%-6.39%) now exceed the staking yield (5.01%). This change followed a governance recommendation that raised the USDe base borrow rate to 6%, making leveraged yield loops costly and potentially loss-making. The shift impacts $323.8 million in USDe debt across five Aave markets and discourages further borrowing for leverage, as every additional loan worsens returns compared to simply holding sUSDe. Investors should monitor both borrow rates and staking yields closely, as these fluctuate and determine profitability of such strategies.

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