Kamino (@kamino): Updates to the Ethena Market

Updates to the Ethena Market Tomorrow, the USDG borrow rate curve in the Ethena Market will be updated at the direction of the Ethena Risk Committee. Alongside this, PYUSD liquidity and the Debt Swap tool will go live. PYUSD will be available in the Ethena Market with a more attractive borrowing opportunity. Users will be able to borrow PYUSD against USDe and loop as liquidity scales. To make the transition seamless, the Debt Swap tool will allow users to move USDG debt to PYUSD instantly with no manual unwinding required. A kink has been introduced at 95% utilization, keeping the rate at 2.5% at the target and 5.25% at max. For reference, current utilization is 85%, so borrow rates remain unchanged, but the curve is expected to shift slightly upwards in the coming days on USDG to support the transition to PYUSD. New USDG borrows will be blocked in the Ethena Market, and existing positions are encouraged to move to the new, more attractive PYUSD reserve.