Ethena’s USDe Stablecoin Gains Traction as it integrates with Aave

The fourth-largest stablecoin by market cap expands its reach, signaling growing acceptance.

Ethena Labs, issuer of the USDe stablecoin, has integrated with Aave — marking a pivotal moment for USDe, which has rapidly ascended to become the fourth-largest stablecoin by market capitalization.

According to Ethena’s team, the integration allows users to deposit USDe and other assets like stETH, weETH, ETH, and WBTC on Aave to borrow stablecoins.

This move not only broadens USDe’s utility but also offers users the opportunity to gain long delta exposure to tokens such as ETH while providing liquidity to Ethena.

The asset has currently reached its debt ceiling of US$40M.

Despite initial skepticism around its yield-bearing architecture, which blends native staking returns with average funding paid to shorts, USDe has seen significant user adoption. Its market cap has surged 42% in the past 30 days, from $2.2 billion to $3.2 billion, according to data from CoinGecko.

The integration with Aave, which holds $13.2 billion in TVL, positions Ethena to tap into the largest lending ecosystem in the industry. Ethena also noted that Aave’s current USDC borrow rates (12.8%) are lower than USDe rates on MorphoLabs (15.4%), potentially offering users a more cost-effective option for leveraged exposure.

This development underscores the growing maturation and acceptance of newer stablecoins in the DeFi space, as platforms seek to balance innovation with risk management.