With elevated funding rates and increasing demand for leverage, Ethena Labs’ stablecoin, sUSDe, has been delivering impressive returns exceeding 27% APY.
This attractive yield has spurred significant growth in sUSDe’s circulating supply, which has more than doubled since October 2024.
Pendle Finance has emerged as the primary beneficiary of this expansion, holding a substantial 1.8 billion sUSDe, accounting for 48% of the total circulating supply. Notably, 750 million of this is allocated to Pendle’s December 25, 2024, market, which is set to mature in just two weeks.
Aave is another major participant in this ecosystem, with sUSDe deposits reaching 1 billion on the platform. Remarkably, over 99% of these deposits have been made in the past month, underscoring the rapid adoption of sUSDe. To accommodate this surge, Aave has continually increased supply caps for sUSDe, with each new limit being quickly maxed out. These deposits now account for 26% of sUSDe’s circulating supply.
1/ With elevated funding rates and demand for leverage, @Ethena_labs' sUSDe has been paying out returns in excess of 27% APY.
Given this attractive return, the circulating supply of sUSDe has grown over 100% since October.
Where is all this sUSDe being utilized? 🧵 pic.twitter.com/T0kEvYOh7n
— Blockworks Research (@blockworksres) December 11, 2024
In a new development, the Aave community introduced a Temperature Check proposal to onboard Pendle’s Principal Tokens (PTs) for the May 29, 2025, sUSDe market. If approved, this would allow users to borrow against collateral with fixed yields, offering an alternative to the current variable yield model in the sUSDe market.
The growing interconnectivity between Ethena Labs, Pendle, and Aave highlights increasing composability and synergy within DeFi. The rapid expansion of sUSDe supply and its adoption across these protocols reflect a rising demand for innovative financial products offering attractive returns and diverse yield options.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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