USDe & USDS Dey Skyrocket After GENIUS Act Through Staking Arbitrage
Afta US GENIUS Stablecoin Act no allow direct issuer interest, di yield-bearing stablecoins USDe an USDS don boom through staking arbitrage. USDe supply climb 70% reach $9.49 billion, USDS come up 23% reach $4.81 billion, make di total $14.3 billion for circulation. Investors dey stake sUSDe an sUSDS to get double-digit APY on USDe (10.86% APY, 8.16% real) an 4.75% APY on USDS (2.05% real), pass di 2.7% US inflation. Ethena’s ENA token rally near 60% as holders dey find protocol yields. USDe dey use ETH/BTC collateral an perpetual-futures shorts; USDS rely on overcollateralization an liquidity mining. Traders fit leverage sUSDe on Aave an compound returns on Pendle Finance, but liquidation risk high. Overall stablecoin supply don grow 23.5% dis year to $268 billion an fit near $300 billion. Risk factors dey include smart-contract complexity, DeFi liquidity conditions an regulatory tightening. Staking arbitrage still be key yield strategy for low-rate environment.
Bullish
Yield-bearing stablecoins USDe and USDS don see fast supply growth and high APY through staking arbitrage, dem draw strong investor demand. With yieldswey pass inflation and strong protocol adoption (sUSDe, sUSDS), short-term trading volume and staking operations likely go remain high. For long term, expanding stablecoin supply and continued yield strategy innovation dey support broader DeFi market growth. Even though smart-contract and regulatory risks dey, the current environment favor bullish sentiment for these tokens.