- In order to borrow stablecoins into Ethena USDe or sUSDe, users can now deposit stETH, weETH, ETH, and WBTC on Aave.
The company behind the fourth-largest stablecoin by market capitalization, Ethena Labs, has connected with Aave, the biggest lending platform in the sector, and is working to expand USDe’s presence in Decentralized Finance (DeFi).
Users can now deposit USDe and loop their position with other stablecoins on Aave, as well as deposit stETH, weETH, ETH, and WBTC on Aave to borrow stablecoins into Ethena USDe or sUSDe, according to the Ethena team. Users will also be able to provide liquidity into Ethena and unleash long delta exposure to tokens like ETH.
In addition, users will receive Sats for posting collateral for USDe (20x multiplier), sUSDe (10x, subject to confirmation through a governance vote), and collateral for ETH, stETH, rETH, and weETH to borrow GHO into USDe (10x), among other benefits.
“More Experienced”
According to Marc Zeller of the Aave Chan Initiative, the asset has matured considerably after a quarter and has been approved for onboarding with caps and inside isolation mode. He stated that risk criteria are reasonable and that there has been “absolutely no pushback” from the community.
His remarks are unexpected considering that Zeller was the author of a proposal in the Aave governance forum to remove DAI’s collateral status on the platform when MakerDAO incited conflict amongst DeFi community members by adding USDe as collateral in the beginning of April.
Ascended the Levels
Ethena is exerting more power with this integration. Users have been swarming to the protocol and its stablecoin USDe despite the fact that its yield-bearing architecture, which combines native staking rewards with average funding delivered to shorts, caused some temporary PTSD in some of them.
By market capitalization, USDe is currently ranked fourth out of all stablecoins, having risen swiftly through the ranks. In the last 30 days, it has increased by 42%, from $2.2 billion to $3.2 billion.
Ethena gains access to the biggest loan environment in the market by joining Aave. DefiLlama reports that Aave has $13.2 billion in total value locked (TVL), or 35% of the sector.
Today on X, the Ethena team revealed that the current borrow rates on USDC for Aave “compare favorably” to the borrow costs seen on the USDe and sUSDe vaults of MorphoLabs, suggesting that this could be a less expensive way to get leveraged exposure.
While USDe on Morpho is currently at 15.4%, USDC on Aave has borrow rates of 12.8%.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
