EtherFi is set to transfer over $500 million in staked Ethereum to Plasma's Layer 2 platform, a move designed to bolster stablecoin yield strategies. This strategic partnership, announced ahead of Plasma's mainnet beta launch, will integrate EtherFi's liquid staking tokens into the ecosystem. The collaboration aims to expand collateral options for both borrowers and lenders within Plasma's DeFi environment.

Backed by Bitfinex, Plasma is a Layer 2 network purpose-built for stablecoins, focusing on providing near-instant, low-fee transactions. This signals a growing trend of integrating staked assets into DeFi protocols to create more sophisticated yield-generating products and enhance liquidity for stablecoin-focused platforms.