Rising Aave borrow rates threaten to flip Ethena’s USDe yield loops into negative carry

- LlamaRisk wants to bump USDe borrow rates on five Aave V3 markets — base rate from 5% to 6% — pushing modeled APRs up 13 to 89 bps across $323.8 million in debt. Translation: the borrow-and-stake-into-sUSDe loop now runs negative carry on every market listed, before fees even nibble. Aggressive passive income meets paperwork with teeth. The loop boys borrowed the spread and called it genius; turns out someone else controlled the faucet. Aavescan showed sUSDe paying 4.72% while borrowing costs sat above it — that's not a yield strategy, that's a subscription to losing money. Where's my cut? Not in that loop. Unsealed cargo, my friends. Trade the manifest, not the hype.