Compound Finance is integrating Ethena’s stablecoin and Mantle’s staking tokens into their decentralized loan and deposit service, as reported by Mantle to CryptoMoon.
On January 8th, the token holders of Compound decided to incorporate stablecoin USDe, as well as mETH from Mantle’s LST, into their Decentralized Finance (DeFi) system for use as lending security.
The integration serves as a recent demonstration of the rapidly increasing use of Ethena’s well-liked yield-generating stablecoin, along with Ether (ETH) LSTs.
This integration showcases how quickly Ethena’s popular yield-bearing stablecoin and Ether (ETH) LSTs are being adopted.
Both sentences convey the same idea but use slightly different wording to make them sound more natural and easy to read.
One of the most widely used decentralized finance (DeFi) lending platforms within the Ethereum network is a compound, boasting over $2.7 billion worth of assets secured (Total Value Locked, TVL) as reported by DefiLlama.
Conversations are taking place to add and merge cmETH into Compound, according to a statement from Mantle. This cmETH is a token used within the DeFi protocol’s liquid restaking system.
Related: DeFi TVL nears 2021 highs on liquid restaking, Bitcoin L2s
DeFi TVL growth
The total value locked (TVL) in DeFi is nearing levels last observed in 2021, with contributions coming from the rise of Liquid Staking Tokens (LSTs) and Layer-2 Rollup Tokens (LRTs), like mETH and cmETH, as reported by DefiLlama.
Currently, as of January 9th, the total value locked (TVL) in Decentralized Finance (DeFi) stands at over $117 billion. This represents a nearly 150% increase compared to the start of the year, based on DefiLlama’s data. However, it’s worth noting that this figure is still lower than the peak recorded in 2021, which was approximately $170 billion, as the data indicates.
Restaking, in simpler terms, refers to the process of reusing a previously staked token, which was initially pledged as security with a validator to earn rewards, for the purpose of supporting multiple protocols concurrently.
Starting from January 9th, the annual return on Ethereum staked in Mantle’s mETH platform was 2.86%. Moreover, the cmETH token, offered by Mantle, provides additional yield through its reinvestment rewards.
Stablecoin adoption
After the victory of U.S. President-elect Donald Trump on November 5, the market value of stablecoins saw a significant surge. With Trump’s pledge to establish America as the global leader in cryptocurrencies, this could be seen as a positive development for digital currencies.
Over the past few months, specifically since November, the total market value of the top three stablecoins – Tether’s USDt (USDT), USDC, and Dai (DAI) – has increased collectively by over $25 billion, as reported by investment bank Citi.
By the end of December, Ethena’s USDe overtook Sky’s (previously known as Maker) Dai in terms of overall market value, placing it as the third largest stablecoin, following USDT and USDC.
In February, USDe gathered billions of dollars from holders of stablecoins who were chasing high, double-digit Annual Percentage Rates (APRs).
From February 2024 onwards, holders of sUSDe have been rewarded with an average annual percentage yield (APY) of approximately 17.5%. This rate reached its highest point at 55.9% on March 7, 2024, and saw its lowest at 4.3% on August 8, 2024, according to a December report from Messari.
On January 9th, the staked version of USDe, known as sUSDe, is estimated to provide around 11.25% return on an annual basis, based on DefiLlama’s data.
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2025-01-09 21:41