Aave's risk advisor, Chaos Labs, warns that as the USDe deposits in Ethena increase, it may threaten Aave's robustness and trigger a liquidity crunch. Ethena needs to control its stablecoin deployment in Aave to avoid redemption risks and market instability. Chaos Labs is developing new tools to adjust interest rates to ensure orderly redemptions.

AAVE-0.62%
ENA0.76%
USDE-0.04%
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