Avalanche is strengthening its position in the decentralized finance (DeFi) space by integrating two major projects, Ethena Labs and Pendle Finance. This collaboration brings new stable assets and innovative yield opportunities to the Avalanche network, leveraging its speed and low transaction fees.
Ethena Labs has introduced its synthetic dollar, USDe, and its staked version, sUSDe, to Avalanche. USDe is designed to maintain a stable value, while sUSDe provides a yield from various sources, including perpetual funding fees, collateral staking rewards, and yield on stablecoin reserves. This is achieved through a delta-neutral hedging strategy, which involves holding long spot positions and short perpetual futures to ensure price stability.
Meanwhile, Pendle Finance has deployed its cross-chain Principal Tokens (PTs) on Avalanche, beginning with PT-USDe. These tokens allow users to separate an asset’s principal and yield components. Users can get fixed-rate exposure with PTs or leveraged exposure to the asset’s yield with Yield Tokens (YTs). Liquidity providers can also earn fees and incentives by supporting these markets.
These new assets are being integrated across the Avalanche DeFi ecosystem, with current support on platforms like Uniswap and others coming soon, including Aave and Benqi Finance. Users can easily bridge USDe and sUSDe to Avalanche at a 1:1 rate with no fees.
The integrations are expected to bring significant scale and utility to Avalanche’s DeFi landscape. Ethena Labs has a market cap of over $13 billion, and Pendle has over $5 billion in Total Value Locked (TVL). By combining Ethena’s stable, yield-bearing assets with Pendle’s advanced yield markets, Avalanche is providing users with new ways to earn rewards, manage risk, and participate in a more versatile DeFi ecosystem.
September 2025, Cryptoniteuae
