Home /Ethena /Yield Sources

sUSDe Yield Sources

Ethena's sUSDe generates yield from two independent streams: Ethereum staking rewards and perpetual futures funding rates. Understanding how these sources interact across different market conditions is key to evaluating sUSDe's risk-reward profile.

Yield Composition Breakdown

How sUSDe's total APY breaks down between its two yield sources. Adjust the market condition to see how the mix changes.

Staking APR
3.5%
Funding Rate APR
12.0%
Total sUSDe APY
15.5%
$10K Yearly Yield
$1,550

Historical Funding Rates vs Staking APR

Simulated historical view showing how funding rates fluctuate with market sentiment while staking yield remains relatively stable.

--- Funding Rate APR --- Staking APR --- Combined APY | Negative funding zone

Market Condition Simulator

Simulate how sUSDe yield changes across bull, neutral, and bear markets. Drag the sliders to model specific scenarios.

Projected 30-Day
$127
Projected 90-Day
$388
Projected 1-Year
$1,550
Effective APY
15.5%

How Each Yield Source Works

ETH Staking Rewards

Ethena stakes its ETH collateral (via Lido, Rocket Pool, or native staking) to earn Ethereum's consensus and execution layer rewards. This provides a stable baseline yield of ~3-4% APR, paid in ETH.

Stability: High - driven by Ethereum's block rewards and MEV
Range: 3-5% APR historically
Perpetual Funding Rates

Perpetual futures use funding rates to keep prices aligned with spot. When more traders are long, longs pay shorts - and Ethena holds shorts. In bull markets, this can generate 10-30%+ APR, but it can turn negative in bearish conditions.

Stability: Variable - driven by market sentiment and leverage demand
Range: -10% to 50%+ APR

USDe vs sUSDe - Yield Accrual

USDe stays at $1.00. sUSDe appreciates over time as yield accrues - similar to how Compound's cTokens work. The exchange rate between USDe and sUSDe increases monotonically as yield is earned.