PANews reported on November 26th that, according to The Block, Ethena's synthetic stablecoin USDe's total value locked (TVL) has fallen from $14.8 billion in October to $7.6 billion currently, a drop of over 50%. Affected by a weak market environment, reduced leverage demand, and compressed perpetual funding fees, the stablecoin's current annualized yield is approximately 5.1%, lower than the double-digit yields at the beginning of the year. Despite the decline in TVL, USDe's usage is on the rise, with on-chain transaction volume exceeding $50 billion last month. The sharp contraction in TVL is largely due to the liquidation of leveraged arbitrage strategies prevalent in DeFi protocols, especially in lending markets like Aave. These arbitrage strategies involve repeatedly depositing pledged USDe (sUSDe) as collateral to borrow USDC at a high loan-to-value ratio, then exchanging it back for sUSDe, and repeating this process to achieve effective leverage of 10x or even higher. This trade could be profitable as long as the annualized yield on USDe exceeded the borrowing cost of USDC; however, with yields declining and currently below the 5.4% cost of borrowing USDC on Aave, some traders have liquidated their arbitrage trades.PANews reported on November 26th that, according to The Block, Ethena's synthetic stablecoin USDe's total value locked (TVL) has fallen from $14.8 billion in October to $7.6 billion currently, a drop of over 50%. Affected by a weak market environment, reduced leverage demand, and compressed perpetual funding fees, the stablecoin's current annualized yield is approximately 5.1%, lower than the double-digit yields at the beginning of the year. Despite the decline in TVL, USDe's usage is on the rise, with on-chain transaction volume exceeding $50 billion last month. The sharp contraction in TVL is largely due to the liquidation of leveraged arbitrage strategies prevalent in DeFi protocols, especially in lending markets like Aave. These arbitrage strategies involve repeatedly depositing pledged USDe (sUSDe) as collateral to borrow USDC at a high loan-to-value ratio, then exchanging it back for sUSDe, and repeating this process to achieve effective leverage of 10x or even higher. This trade could be profitable as long as the annualized yield on USDe exceeded the borrowing cost of USDC; however, with yields declining and currently below the 5.4% cost of borrowing USDC on Aave, some traders have liquidated their arbitrage trades.

                                                                               Wormhole’s native token has had a tough time since launch, debuting at $1.66 before dropping significantly despite the general crypto market’s bull cycle.                     Wormhole, an interoperability protocol facilitating asset transfers between blockchains, announced updated tokenomics to its native Wormhole (W) token, including a token reserve and more yield for stakers. The changes could affect the protocol’s governance, as staked Wormhole tokens allocate voting power to delegates.According to a Wednesday announcement, three main changes are coming to the Wormhole token: a W reserve funded with protocol fees and revenue, a 4% base yield for staking with higher rewards for active ecosystem participants, and a change from bulk unlocks to biweekly unlocks.“The goal of Wormhole Contributors is to significantly expand the asset transfer and messaging volume that Wormhole facilitates over the next 1-2 years,” the protocol said. According to Wormhole, more tokens will be locked as adoption takes place and revenue filters back to the company.Read more