DeFi
Ethena expands USDe to Aave as ‘asset matures’
Users can now deposit stETH, weETH, ETH and WBTC on Aave to borrow stablecoins to Ethena USDe or sUSDe.
Ethena Labs, issuer of the fourth largest stablecoin by market capitalization, continues to expand the reach of USDe in the decentralized finance (DeFi) space and has integrated with the industry’s largest lending platform, Aave.
According to Ethena team, users can now deposit USDe and loop their position with other stablecoins on Aave, and deposit stETH, weETH, ETH and WBTC on Aave to borrow stablecoins in Ethena USDe or sUSDe. Users will also unlock long delta exposure to tokens such as ETH while providing liquidity to Ethena.
Additionally, users will be able to earn Sats by posting USDe collateral (20x multiplier), sUSDe collateral (10x, although this needs to be confirmed via a governance vote), stETH, ETH, rETH and weETH collateral to borrow GHO in USDe (10x). ) among other bonuses.
“More mature”
“After one quarter, the asset is more mature and was deemed acceptable to be integrated with caps and interior insulation mode,” said Marc Zeller of the Aave Chan Initiative. He told The Defiant that there had been no pushback from the community and that the risk parameters were robust.
His words come as a surprise, given that Zeller is the author of a proposal in the Aave governance forum to revoke the collateral status of DAI on Aave, when MakerDAO led DeFi community members to shock on adding USDe as collateral in early April.
Climbed the ladder
Integration is yet another powerhouse initiative from Ethena. Despite trigger short-term PTSD Thanks to the way its yield-bearing architecture works – thanks to a unique blend of native staking yields and average funding paid to shorts – users have flocked to the protocol and its stablecoin USDe.
USDe has quickly moved up the ranks and now occupies fourth place among all stable coins by market capitalization. He grew up 42% in the last 30 days, from $2.2 billion to $3.2 billion.
USDe market capitalization – CoinGecko
By joining Aave, Ethena unlocks the industry’s largest lending ecosystem. Aave holds $13.2 billion in total value locked (TVL), which represents 35% of the industry, according to DéfiLlama.
The Ethena team explained today on USDC for Aave “compares favorably” to borrowing costs observed on MorphoLabs USDe and sUSDe vaults and may be a cheaper option for accessing leveraged exposure.
Borrowing rate for USDC on Aave stands at 12.8%, while the USDe on Morpho is currently at 15.4%.