Ethena Pay launches Earn+ with an 11x leveraged vault

The new vault, called Earn+, allows users to potentially earn up to 12% APY through a strategy that aims for approximately 11x leverage. Upshift and Steakhouse manage the external vault, which Ethena Pay says uses Aave v4 on Avalanche. Initial capacity is limited to $4.5 million across all users.

Money allocated to Earn+ leaves the user's regular USD Account and stops earning the app's Daily Boost. Ethena Pay provides the interface but states it neither manages nor guarantees the vault assets. Users must accept separate terms and risk disclosures before participating.

Borrowing strategy

The vault operates through a borrowing loop strategy, supplying $USDe as collateral to an Aave v4 Avalanche market, borrowing $USDT, buying more $USDe and repeating the trade. The stated leverage target is approximately 11x. Ethena Pay notes that the $USDe oracle on that market is pegged to $USDT, similar to Aave v3.

Only Ethena Pay users can access Earn+, though the strategy operates through external protocols. The vault is described as capable of operating across chains and protocols from launch, with Avalanche named as the initial execution network.

Access and limits

At launch, Standard users can allocate $20,000, Pro users $50,000 and VIP users $200,000, all beneath the aggregate $4.5 million vault cap. Ethena Pay plans to increase capacity as caps fill but hasn't provided dates or sizes for these increases.

The company charges no fee for deposits or withdrawals. Adding money is instant, while withdrawal requests are processed within 24 hours, though the FAQ warns that withdrawals can take longer than usual. During delays, the app keeps withdrawals marked as pending and notifies users upon completion.

Risk and rewards

The risk disclosure states users could lose some or all money in Earn+ due to smart-contract bugs, exploits, or third-party failures. Ethena Pay disclaims responsibility for the vault's performance and losses, noting it has no FDIC, SIPC or other deposit-insurance coverage.

Earn+ has its own reward rate and external operators. Money allocated to it is ineligible for Daily Boost, so users cannot combine the two advertised rates on the same allocation. The advertised APY is a target that can change, including falling.