---
title: "USDe Yield Flag Holds As Supply Slips"
canonical: "https://pharos.watch/digest/2026-10-12-weekly/"
datePublished: "2026-10-12T09:40:00.000Z"
description: "USDe held the week's top yield flag at 5.03% APY as its market cap slid to $4.75B. USDC was the largest supply mover on five days, -$1.15B on a trailing basis. "
---

# USDe Yield Flag Holds As Supply Slips

## Executive Summary

USDe held the week's top yield flag at 5.03% APY as its market cap slid to $4.75B. USDC was the largest supply mover on five days, -$1.15B on a trailing basis. PSI stayed BEDROCK, 88.6 to 92.5.

## Extended

USDe carried the week's top risk flag: a yield warning at 5.03% APY on 2026-10-07, with no corroborating opportunity evidence, on a $4.97B market cap. The flag appeared in all seven daily editions. Over that span, APY eased from 5.06% to 4.93% and market cap fell to $4.75B by 2026-10-12. PSI stayed in BEDROCK throughout, ranging from 88.6 to 92.5 and closing at 92.1 against a 91 open. Its 91.1 midpoint sat 2.1 points below the prior week.

USDC was the largest supply mover on five of seven days, each time to the downside. Its trailing weekly change widened from -$507.45M on 2026-10-06 to -$1.17B on 2026-10-10 and stood at -$1.15B on 2026-10-12. USDT held the top spot only on 2026-10-07 and 2026-10-08, at +$482.55M and +$527.86M. The USDC figures measure net token burning; the data does not establish who redeemed or why.

The Bank Run Gauge midpoint rose to -1.8 from -11.8, although the low of -19.4 came on 2026-10-09, the same day PSI hit 88.6. apxUSD resolved a 372 bps discount on 2026-10-10 after 159 hours. DEWS still moved it from CALM to WATCH three times on cross-source divergence, while A7A5 moved from WATCH to CALM on three readings. USDA at 3098 bps and pmUSD at 5181 bps remain standing depegs carried over from before the week.

Weekly market cap is unavailable because supply coverage was incomplete. USDe recorded a $53.89M net burn at -100 intensity on 2026-10-09, in line with its falling market cap; the burn alone does not establish investor withdrawals. Active depeg observations rose to 150 from 138. Blacklist events held at 168, and the known USD subtotal climbed to $53.21M from $36.04M on partial valuation, led by a $9.43M USDC blacklist on Base. No grade movers were recorded, and A tier holds 76.9% of the $338.0B known mapped supply.

Daily triggers went 7 hit and 7 missed, a 50% hit share, with 2 pending and 5 unavailable for lack of evidence. Next week will decide whether USDC's trailing weekly change stays beyond -$1B. A USDe market cap below $4.75B would extend a decline that has run every day since 2026-10-07.