Decentralized finance (DeFi) platform Compound Finance has integrated Ethena’s stablecoin USDe and Mantle’s liquid staking token mETH into its lending platform, following a successful governance vote on January 8.
The move comes as DeFi continues to see strong growth, with total value locked (TVL) in DeFi protocols hitting $117 billion, up 150% year-to-date.
Compound, which currently has about $2.7 billion in TVL, will allow users to use both tokens as lending collateral. The platform is also discussing adding Mantle’s liquid restaking token, cmETH, to further expand its product offering.
“Compound’s well-established track record of security aligns perfectly with our vision for the Mantle ecosystem,” said Gabriel Foo, DeFi Growth Lead at Mantle. “The integration of USDe and mETH is a key first step in advancing our mission and ensuring the long-term sustainability of decentralized finance.”
Mantle’s mETH currently generates a 2.86% annual yield on staked ETH, with additional yields available through cmETH’s restaking rewards.
Meanwhile, Ethena’s USDe has seen impressive growth since its launch in February. It recently surpassed Dai to become the third-largest stablecoin after USDT and USDC.
The stablecoin has also generated strong yields, with Staked USDe (sUSDe) producing an average APY of 17.5% since launch and current yields around 11.25%.
The integration of USDe and mETH into Compound marks a convergence of key trends in DeFi: the growth of yield-bearing stablecoins, the increasing adoption of liquid staking technology, and the consolidation of major DeFi protocols.
If Compound decides to add cmETH, it will further expand the DeFi protocol’s product line, demonstrating the interconnectedness and rapid evolution of the DeFi ecosystem.
