Pendle’s Trading Strategies Push Aave USDe Exposure to $6.6 Billion

A significant surge in Aave’s exposure to USDC (stablecoin) is attributed to Pendle’s sophisticated trading strategies, exceeding $6.6 billion. This increase has raised concerns about systemic risks in DeFi (Decentralized Finance) protocols. Chaos Labs, a leading company examining these risks, attributes the growth primarily to leveraged stablecoin positions using Pendle’s Principal Tokens. These actions highlight potential vulnerabilities in DeFi lending systems.