Ethena Labs has launched its synthetic dollar, USDe, and its staked counterpart, sUSDe, on the Avalanche network. This expansion enables users to access yield-generating assets backed by a delta-neutral hedging strategy, which combines long positions in spot Ether (ETH) and Bitcoin (BTC) with short perpetual futures to maintain its peg.

In parallel, the yield tokenization protocol Pendle Finance has introduced its platform to Avalanche. This allows users to split sUSDe into Principal Tokens (PT) and Yield Tokens (YT), creating distinct markets for fixed-rate yields and leveraged yield exposure. The move brings two significant DeFi protocols to the Avalanche ecosystem, which is known for its high transaction speeds and low fees.

Ethena’s USDe has a market capitalization of over $13 billion, while Pendle’s Total Value Locked (TVL) has surpassed $12 billion, indicating the scale of the capital and tooling now available on Avalanche. Several decentralized exchanges, including Uniswap, are providing initial liquidity for sUSDe, with integrations planned for lending platforms like Aave and Benqi.

This collaboration signals a growing trend of sophisticated, multi-chain DeFi strategies deploying on scalable Layer 1 networks. It provides Avalanche users with access to complex financial instruments previously unavailable on the platform, fostering deeper liquidity and more diverse yield opportunities.