Zach Anderson
Nov 07, 2025 12:29
Avalanche’s DeFi ecosystem advances with integrations like Ethena, Pendle, and PayPal USD, enhancing stable assets and yield markets, according to Avax.network.
Avalanche’s DeFi ecosystem is experiencing significant growth with the integration of Ethena, Pendle, and PayPal USD (PYUSD0), strengthening its position as a foundational platform for decentralized finance, according to Avax.network. These additions are poised to expand the network’s capabilities with new stable assets, structured yield markets, and ready-to-use payment solutions.
Ethena: Expanding Stable Asset Options
Ethena introduces its synthetic dollar systems, USDe and sUSDe, to Avalanche, providing a robust stablecoin option that aims to maintain a $1 peg through a delta-neutral strategy. This approach involves a combination of long BTC/ETH spot collateral and short perpetual futures to mitigate direct crypto volatility, positioning USDe as a leading synthetic stablecoin globally. The staked variant, sUSDe, offers potential yield-bearing opportunities by distributing protocol revenues from various sources, including perpetual futures funding and staking rewards.
sUSDe liquidity is now accessible on platforms like Uniswap and Pharaoh Exchange, enhancing the stable asset offerings on Avalanche and reinforcing its DeFi ecosystem.
Pendle: Yield Infrastructure at Scale
Pendle’s launch on Avalanche introduces the first cross-chain Principal Tokens (PTs), offering fixed and variable yield strategies around USDe and sUSDe. By unbundling principal and yield, Pendle provides users with the ability to lock in consistent returns or take targeted exposure to yield volatility, mimicking traditional fixed-income markets. This integration supports Avalanche’s DeFi stack by facilitating more efficient capital management and risk optimization.
Pendle’s model, which includes Principal Tokens, Yield Tokens, and Liquidity Providers, aims to unlock greater capital efficiency and composability within the Avalanche ecosystem.
Payment Infrastructure: PayPal USD (PYUSD0)
PayPal USD (PYUSD0) is now available on Avalanche, marking a shift from speculative use to real-world utility in payments and settlements. Issued by Paxos and distributed via LayerZero, PYUSD0 enhances Avalanche’s payment infrastructure, enabling digital dollars to be used at scale for remittances and merchant payments. This integration bridges traditional fintech and blockchain, demonstrating how stablecoins can transition into payment-ready money for institutional and retail use.
Building Toward a Comprehensive DeFi Stack
Avalanche’s DeFi Total Value Locked (TVL) has more than doubled, reaching $2.1 billion as of September 2025, signaling increased adoption across various financial activities. The integration of Ethena, Pendle, and PYUSD0 not only contributes to the ecosystem’s growth but also signifies DeFi’s evolution into a foundational monetary infrastructure. Avalanche’s combination of scale, composability, and settlement speed positions it as a central network for expanding stable assets, yield strategies, and digital payments globally.
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Source: https://blockchain.news/news/avalanche-expands-defi-ecosystem-with-stable-assets-and-yield-markets
