Ethena’s USDe and sUSDe Go Live on Avalanche in Major Cross-Chain Push

Ethena Labs has launched its synthetic dollar $USDe and staked $USDe (sUSDe) on Layer 1 blockchain Avalanche, marking a major cross-chain expansion for the project.

$USDe currently has a market capitalization of over $13 billion, up 128% from $5.7 billion in June, making it the third-largest circulating stablecoin, according to DeFiLlama data. Meanwhile, Ethena's native ENA token is up 17% in the past week to a $11.6 billion valuation.

Today’s rollout includes integrations with Uniswap, Pharaoh Exchange, LFJ, and BlackholeDEX for spot liquidity, while protocols like Euler, Silo, Folks Finance, and Term Labs will soon support $USDe, sUSDe, and associated Pendle tokens as collateral. Ethena added that it is exploring potential collateral integrations with Benqi and Aave.

“Ethena assets will be usable within major lending & trading DeFi apps on Avalanche, starting from today,” Ethena wrote in an X post earlier today, adding that eligible decentralized finance (DeFi) interactions on Avalanche will qualify users for both $AVAX rewards and Ethena Points.

$AVAX is Avalanche’s native token that is currently trading at $28.60, up 52% over the past three months, per CoinGecko.

Ethena also revealed that Pendle Finance is bringing its first instance of cross-chain Principal Tokens (PTs) to Avalanche. “Starting from today, November $USDe PT will be bridgeable to Avalanche via the Pendle site, in collaboration with @LayerZero_Core,” the post reads. “Cross-chain PT deposits will be accepted on money markets like Euler and Silo as collateral to borrow other stables.”

The expansion comes as Avalanche’s total value locked (TVL) has nearly doubled over the past two quarters, rising from $1.1 billion in April to around $2.1 billion today, according to DeFiLlama. Analysts say institutional inflows, gaming adoption, and network upgrades have fueled the rebound.

Nic Puckrin, CEO and founder of Coin Bureau, told The Defiant earlier this week that Avalanche’s growth positions it well to become a hub for tokenized assets and DeFi.

“With more liquidity and cheaper transactions, devs and users alike have stronger incentives to build and participate,” he said. “This means Avalanche is more equipped to compete directly with Solana and Ethereum’s Layer 2s, particularly in areas where tokenization is gaining traction.”

Earlier this year, Ethena expanded to the TON blockchain, deploying $USDe and sUSDe in May. The integration, which makes sUSDe available as tsUSDe within Telegram’s in-app wallets, gives the messaging platform’s roughly one billion users access to stablecoin yield inside both its custodial Wallet and noncustodial TON Space.