Aave Welcomes stETH, weETH, ETH, and WBTC for Stablecoin Borrowing

Ethena Labs, known for issuing the fourth-largest stablecoin by market capitalization, USDe, has expanded its reach in the Decentralized Finance (DeFi) sector by partnering with Aave, the industry’s leading lending platform. This collaboration allows users to deposit assets such as stETH, weETH, ETH, and WBTC on Aave to borrow stablecoins like Ethena USDe or sUSDe. Additionally, users can gain exposure to tokens like ETH while providing liquidity and earn rewards by posting collateral in various forms.
Marc Zeller from the Aave Chan Initiative has assured that after a thorough assessment, the asset has been considered mature enough to be integrated with Aave under certain conditions without any pushback from the community. This integration comes after a proposal by Zeller to revoke the collateral status of DAI on Aave, following controversy within the DeFi community regarding USDe’s acceptance as collateral.
USDe has seen significant growth, with a 42% increase in market capitalization over the last 30 days, solidifying its position as a major player in the stablecoin market. By joining forces with Aave, which boasts a total value locked (TVL) of $13.2 billion, Ethena taps into the largest lending ecosystem in the industry. This partnership also presents favorable borrowing rates for USDC on Aave compared to other platforms, potentially offering more cost-effective leverage options for users.