Avalanche is still strengthening its position in the DeFi ecosystem with the integration of major projects Ethena Labs and Pendle.
The collaboration brings scalable, stable assets, cross-chain principal tokens (PTs), and innovative yield opportunities to users, providing them with faster, lower-transaction fees with improved utility. These developments are a major step towards making AVAX a hub for advanced decentralized finance applications.
Ethena Labs Brings sUSDe to Avalanche
Ethena Labs has officially deployed USDe and sUSDe on Avalanche. USDe is a crypto-native synthetic dollar that is pegged to $1, and sUSDe is staked USDe that has protocol revenue streaming to holders.
The assets are designed to integrate with major DeFi platforms in the Avalanche network, to allow users to earn AVAX rewards and Ethena Points while participating in various liquidity and trading activities.
sUSDe’s yield is produced by several mechanisms:
- Perpetual funding and basis trades
- Fees from holding the short side of delta-neutral hedges
- Yield on Stablecoin reserves
- Staking Rewards on Collateral
By using a delta-neutral hedge strategy — long BTC/ETH spot positions with short perpetual futures — sUSDe hopes to provide both price stability and potential yield for holders.
Pendle Unlocks Cross-Chain Principal Tokens
Pendle Finance has joined Avalanche with our first implementation of cross-chain PTs, starting with PT-USDe (Nov 2025). PTs permit users to separate principal and yield components of assets:
- PT (Principal Token): Gives a fixed rate exposure (discounted assets)
- YT (Yield Token): Provides leveraged exposure to Ethena assets
Liquidity providers can also earn swap fees and Pendle incentives for supporting these markets. Cross-chain PTs on Avalanche are both fully transparent and deployed locally, and can be bridged and redeemed through a unified Pendle interface powered by LayerZero.
Integration Across Avalanche DeFi Ecosystem
sUSDe and USDe are now active on several Avalanche-based platforms:
- Live today: Uniswap, LFJ, PharaohExchange, BlackholeDex (spot liquidity)
- Coming soon: Euler Finance, Silo Finance, Folks Finance, Term Labs (markets/collateral)
- Under discussion: Benqi Finance, Aave (more collateral integrations)
Users can bridge USDe and sUSDe directly to AVAX through Stargate Finance at a 1:1 rate with no fees or slippage.
This provides seamless access to liquidity and staking rewards in Avalanche’s fast and scalable environment.
Market Impact and Scale
The integration of Ethena Labs and Pendle brings a lot of scale to Avalanche:
- Ethena Labs USDe Market Cap: $13.2B (Sept 2025)
- Pendle: Over $5B TVL, $2.5B in PTs used as collateral
With sUSDe and Pendle’s PT markets, AVAX users will be able to participate in new yield opportunities, export volatility, and potentially capture funding fees from perpetual traders. Yields can change with the market cycle, but the delta-neutral hedge will help keep $1 parity for sUSDe.
Conclusion
Avalanche Foundation partnership with Ethena Labs and Pendle is a huge step for DeFi. By mixing and matching a stable asset that rewards and fuses it with some of the best cross-chain yield markets, AVAX offers users a faster, scalable, and more versatile DeFi ecosystem.
As more platforms are integrating these assets, the network is expected to continue to cement its position as the leader among DeFi platforms, while providing real utility and rewards to its community.
Recently, the Avalanche Foundation announced plan to prepare one of its boldest financial plays yet – a $1 billion treasury designed to push its native token, AVAX, deeper into mainstream capital markets.
The plan hinges on two U.S.-based ventures, one involving a merger with a listed company and another tied to a fresh corporate vehicle.
