Since @ethena_labs launched Liquid Leverage, adoption has been nothing short of explosive, more than $1.5B in inflows within weeks, a pace that set new records for Ethena products. At the core of this growth is the Pendle–Aave looping synergy: - Users split sUSDe into fixed-yield PTs on Pendle. - Those PTs are then collateralized on Aave to borrow more, enabling recursive looping. This structure turns sUSDe into a capital-efficient engine, combining fixed income with leverage in a way DeFi hasn’t really seen before. The impact is already visible-USDe supply has surged past $11B ATH, with Liquid Leverage now acting as a major driver of “supply discovery” across money markets. To manage this rapid scale, Ethena recalibrated incentives at launch: -Base USDe reward multipliers on Aave and other money markets were set to 5x. - For users looping sUSDe PTs while also holding the YT side, multipliers were also reduced to 5x, curbing over-farming and aligning rewards with sustainable growth. + What’s more, @SiloFinance has stepped in to extend this strategy. Its Auto-Leverage feature now supports @pendle_fi PTs (including PT-sUSDe), pushing yields from ~12.4% fixed APY up to ~70% net APR with automated loops. it removes the manual friction and opens Liquid Leverage strategies to a broader set of users. Taken together, Liquid Leverage hasn’t required a core redesign instead, it’s grown through scaling integrations and incentive recalibration. Today, it stands as a cornerstone of Ethena’s $7B+ DeFi ecosystem, anchoring the ongoing yield boom and reshaping how stable-backed leverage works onchain.