Merge adds Ethena, Mantle Tokens to the lending platform
Compound Finance is adding Etena's stablecoin and Mantle's liquid staking token (LST) to its decentralized lending and borrowing platform, Mantle told Cointelegraph.
On January 8, Compound Token holders voted to add stablecoins USDe and mETH, Mantle's LST, to the decentralized finance (DeFi) protocol as collateral.
The merger is the latest example of the adoption of Ethena's popular stablecoin and Ether (ETH) LSTs.
Compound is one of the most popular DeFi lending protocols on the Ethereum network, with more than $2.7 billion in total value locked (TVL), according to Defillama.
“Discussions are ongoing to introduce and integrate cmETH into Compound,” Mantle said in a statement, referring to the DeFi protocol's liquid retrieving tokens (LRTs).
Integrated Finance TVL. Source: Defillama
DeFi TVL development
DeFi TVL is approaching unprecedented highs since 2021, partly due to the adoption of LSTs and LRTs, such as mETH and cmETH, according to Defillama.
Cumulative DeFi TVL stands at more than $117 billion as of January 9, a year-over-year increase of nearly 150%, according to Defillama. It will still peak at $170 billion in 2021, the data shows.
Rescheduling involves taking an already staked token – escrow with a validator in exchange for a reward – and using other protocols to secure it at the same time.
As of January 9th, Mantle mETH has yielded 2.86% annualized return on ETH held. Its cmETH token improves its products with recurring rewards.
Total DeFi TVL Source: Defillama
Stablecoin adoption
The President-elect of the United States, Donald Trump, After winning the November 5 election, the market capitalization of Stablecoin increased significantly. Trump has promised to make America the “crypto capital of the world.”
Since November, the total market capitalization of Tethers USDt (USDT), US Dollar Coin (USDC) and DAI (DAI) has grown to more than $25 billion, according to investment bank Citi.
In December, EtenaUSD overtook Sky (former maker) Dai in total market capitalization to become the third largest stablecoin behind USDT and USDC.
Launched in February, USDe has bought billions of dollars from stablecoin holders chasing double-digit APRs.
“As of February 2024, sUSDe holders have earned an average APY of 17.5%, down 55.9% (March 2024) and 4.3% (August 8, 2024),” said cryptocurrency researcher Messari. He said in a December memo.
As of Jan. 9, stock-holding USDe, or sUSDe, is yielding annual percentage returns of approximately 11.25%, according to Defillama.
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