DeFi
Ethena brings a synthetic dollar to blow up layer 2
Various DeFi protocols in the Blast ecosystem now enjoy native yield, lending, and trading with USDe and sUSDe.
The Ethena Labs synthetic dollar is now live on the Ethereum Layer 2 Blast network. The integration comes with native USDe and sUSDe yield across a plethora of DeFi dApps.
Six different protocols add support for USDe and sUSDe, including ThrusterFi, which will offer liquidity tools for both tokens associated with Blast’s native USDB. Both pools will receive the maximum allocation of Ethena with 30x sats, alongside Blast Gold and Thruster credits. Users who also invest their assets in HyperlockFi will receive five times rewards in sats.
Entering the Blast ecosystem will also mean Juice Finance users can mine Ethena sats with leverage.
Lenders can also provide USDe on which to borrow Ready in orbit with up to 4x leverage, receiving 20x rewards on their positions alongside Blast Gold and Orbit Points.
Additional protocols include Initialization capitalwhich offers optimized looping, Morpho and Particle trading. Bridging ETH to Blast via Stargate Finance is also now available.
Blast’s integration with Ethena Labs is a major step forward for both protocols. Since the launch of its controversial one-way bridge, Blast has attracted a lot of attention from users. Its total value locked (TVL) increased from $0 in February to $2.2 billion today, according to ChallengeLlama.
Ethéna TVL
On the other hand, the Ethena Labs offering faced controversy regarding its double-digit return. THE “synthetic dollar” is collateralized by crypto assets – such as staked Ethereum (stETH) – and corresponding short futures positions on centralized exchanges. triggered Luna-induced PTSD among the experts.
Many came to the rescue, saying the architecture was truly innovative (and solid) and the protocol was making waves.
The USDe quickly rose through the ranks in the stable coin sector, and now ranks fourth in terms of market capitalization, according to CoinGecko. The sector as a whole is worth $161 billion, with $2.9 billion locked in Ethena’s USDe.