Spark, one of the most advanced yield engines in DeFi, has announced the integration of Ethena’s USDe and sUSDe assets into the Spark Liquidity Layer (SLL). To continue to streamline stablecoin liquidity across DeFi, SLL will allocate stablecoins directly to Ethena, with plans to ramp up to a total allocation of $1.1 billion for the Ethena ecosystem.
Ethena is an Ethereum-based protocol that issues USDe, a synthetic dollar backed by crypto assets, primarily Bitcoin and Ethereum. Unlike traditional stablecoins, USDe uses a delta-neutral hedging strategy to maintain its 1:1 peg with the U.S. dollar. Ethena also offers sUSDe, a reward-bearing version that earns rewards from staked assets and derivative markets.
SLL already provides stablecoin liquidity to major DeFi platforms such as Aave, Morpho, and Base, and its balance sheet manages liquidity between stablecoin assets such as USDC, USDS, and sUSDS. The integration of USDe and sUSDe marks a major milestone in Spark’s mission to become the leading yield engine for DeFi, automatically balancing stablecoins across protocols to ensure efficient liquidity deployment while maximizing returns for the Spark ecosystem.
Sam MacPherson, CEO of Phoenix Labs, said, “Spark is doubling down on its commitment to being the go-to liquidity provider for DeFi protocols and applications. The Spark Liquidity Layer efficiently distributes liquidity across DeFi platforms while enabling Spark to maximize its earnings, facilitating higher returns, and enhancing potential profitability for Spark. Direct access to Ethena’s crypto-native stablecoins will unlock exciting new opportunities for protocols on the platform.”
Guy Young, Founder and CEO of Ethena said, “We see USDe as an incredibly powerful primitive for the best DeFi applications and builders today. Ethena’s integration with Spark Liquidity Layer represents a major move towards enhancing the accessibility of USDe and sUSDe, and allows for more users to benefit from crypto-native assets. The industry is on the brink of a new era of interoperability, and by joining forces with Spark, we are accelerating this movement.”
In addition to access to USDe and sUSDe from today, users and protocols can continue to benefit from Savings USDS (sUSDS), offering a predictable and stable 12.5% savings rate, supported by the Sky Protocol’s diverse revenue streams, including Spark, which generates an estimated $245 million in annual revenue.