Ethena Brings Synthetic Dollar to Blast Layer 2

Various DeFi protocols in the Blast ecosystem now enjoy native yield, lending, and trading with USDe and sUSDe.

By: Pedro Solimano Loading...

depiction of a synthetic dollar

Ethena Labs’ synthetic dollar is now live on Ethereum Layer 2 network Blast. With the integration comes USDe and sUSDe native yield on a plethora of DeFi dApps.

Six different protocols are adding support for USDe and sUSDe, including ThrusterFi, which will offer liquidity lools for both tokens paired with Blast’s native USDB. Both pools will receive the maximum Ethena allocation with 30x sats, alongside Blast Gold and Thruster Credits. Users who also stake their assets in HyperlockFi will receive fivefold rewards in sats.

Entering the Blast ecosystem will also mean Juice Finance users can farm Ethena sats with leverage.

Lenders can also supply USDe to borrow on Orbit Lending with up to 4x leverage, receiving 20x rewards on their positions alongside Blast Gold and Orbit Points.

Additional protocols include Init Capital, which offers leveraged looping, Morpho, and Particle Trade. Bridging ETH to Blast via Stargate Finance is also now available.

Integrating Blast with Ethena Labs is a power move by both protocols. Since launching its controversial one-way bridge, Blast has garnered a lot of attention from users. Its total value locked (TVL) skyrocketed from $0 in February to $2.2 billion today, according to DefiLlama.

Ethena TVL chart
Ethena TVL

On the other hand, Ethena Labs’ offering has faced controversy over its double-digit yield. The “synthetic dollar” is collateralized with crypto assets – such as staked Ethereum (stETH) – and corresponding short futures positions on centralized exchanges. That triggered Luna-induced PTSD among pundits.

Several came to the rescue, claiming the architecture was truly innovative (and sound), and the protocol has been making waves.

USDe has quickly climbed the ranks in the stablecoin sector, and now ranks fourth by market cap, according to CoinGecko. The overall sector is worth $161 billion, with $2.9 billion locked in Ethena’s USDe.