Compound Finance, a prominent decentralized finance (DeFi) lending platform on Ethereum, has recently expanded its offerings by integrating Ethena’s USDe stablecoin and Mantle’s mETH liquid staking token (LST) into its ecosystem. This move, approved by Compound’s token holders on January 8, signals a strategic evolution for the platform as it taps into the growing trend of yield-bearing stablecoins and staking tokens within the DeFi space.
The integration of USDe and mETH underscores the continued growth of DeFi, with total value locked (TVL) surpassing $118 billion by January 9, 2025, as reported by DefiLlama. These innovative assets not only provide collateral options but also offer attractive yields for users. By incorporating these tokens, Compound aims to offer its users a more diverse range of investment opportunities and stay at the forefront of DeFi innovations.
USDe, Ethena’s yield-bearing stablecoin, has gained popularity in the stablecoin market since its launch in February 2024. With an average annual percentage yield (APY) of 17.5% for its staked version, sUSDe, USDe has quickly garnered significant capital and surpassed Dai in market capitalization, solidifying its position as one of the leading stablecoins globally.
On the other hand, Mantle’s mETH enables users to stake ETH and earn a 2.86% annual yield, with additional opportunities for yield enhancement through restaking with cmETH, Mantle’s liquid restaking token. By adding these tokens to its platform, Compound not only expects to increase its TVL but also enhance liquidity and yield options for users, creating a more dynamic and robust DeFi ecosystem.
Overall, Compound’s decision to integrate USDe and mETH demonstrates its commitment to providing cutting-edge DeFi solutions and catering to the evolving needs of its user base. With the DeFi market continuing to expand and diversify, these additions are poised to further solidify Compound’s position as a key player in the decentralized finance landscape.
