AaveLabs has submitted a proposal on the Aave governance forum to list USDe, Ethena’s synthetic dollar stablecoin, on Aave V3’s MegaETH market. The main feature is a yield passthrough structure: users who deposit USDe would receive returns equivalent to holding sUSDe, without having to stake into sUSDe separately. Risk assessor LlamaRisk has publicly backed the plan.
The direct-to-AIP proposal was submitted on April 6, 2026. According to the source material, USDe is currently the third-largest stablecoin by market value, and its peak market cap once exceeded $14 billion. USDe is already live across several Aave deployments, including Ethereum mainnet, Arbitrum, Base, Avalanche, and Plasma. This proposal targets MegaETH, an Ethereum Layer 2 network that launched its mainnet in February and focuses on real-time transaction speed.
USDe deposits would earn sUSDe-equivalent yield
The proposal centers on a “yield passthrough” model. On this MegaETH deployment, depositing USDe into Aave would give users the same yield profile as holding sUSDe. That removes a separate staking step and allows leverage looping strategies to be executed more directly.
The setup is partly enabled by a reduction in the unstaking cooldown for sUSDe. For users running stablecoin carry or looping strategies, cutting out one step improves capital efficiency and lowers operational friction onchain.
Risk parameters set the cap at 50 million USDe
The proposed configuration sets a 50 million USDe supply cap and a 40 million USDe borrow cap. The optimal usage ratio is 85%. On the interest rate curve, Slope 1 is 4% and Slope 2 is 12%, while the reserve factor is 25%.
Within stablecoin E-Mode, USDe could be used as collateral with a maximum 90% LTV and a 93% liquidation threshold. Assets available to borrow in that mode are USDm and USDT0.
Bridge design relies on a single LayerZero route
USDe’s cross-chain setup on MegaETH uses the LayerZero OFT standard, and the bridge route is limited to Ethereum mainnet. The proposal says the transfer rate limit is 10 million tokens per hour, implying theoretical daily throughput of up to $240 million.
LlamaRisk highlighted the concentration risk in that structure. If the communication channel between LayerZero and Ethereum mainnet is interrupted, there is currently no alternative cross-chain route to move funds back. The review also noted that this MegaETH-specific deployment does not yet have chain-specific audit coverage; the available audit record covers Ethena’s core contracts and the LayerZero OFT implementation.
As of April 6, circulating USDe supply on MegaETH was about 3 million tokens. The seed liquidity pool USDe/USDm Kumbaya was providing roughly $6 million in liquidity. Separately, Aave has received 30 million MegaETH points as incentives for onchain lending activity rewards.