Bitcoin Collapse Threatens $1 Billion DeFi Position

Critical Period in the Bitcoin Market

The market crash on October 10th endangered approximately $1 billion worth of DeFi positions linked to Ethena's staked USDe. This situation raised concerns among investors.

Especially, the yields on leveraged strategies like sUSDe cyclical transactions turned negative. This significantly reduced the attractiveness of these transactions.

Traders need to carefully monitor the difference between the annual interest rate on borrowing on the Aave platform and the sUSDe yield, as well as the number of cyclical positions approaching liquidation.