Ethena Labs expands USDe stablecoin presence on X Layer

Ethena Labs has launched native support for its USDe synthetic dollar on X Layer, OKX’s Layer-2 network. This transition from a bridged version to native issuance removes dependency on bridges, allowing for direct holding, transfers, and deeper DeFi integration within the OKX ecosystem.

The expansion includes the launch of an Aave v3 lending market on X Layer, enabling users to supply USDe as collateral or borrow it against other assets. Future plans involve implementing a ‘one-click looping’ feature within the OKX Wallet to automate yield-stacking processes for retail users.

USDe operates as a synthetic dollar that maintains its $1 value through a variety of backing mechanisms rather than traditional fiat reserves. These include delta-neutral crypto positions, institutional lending, stablecoin liquidity, and tokenized real-world assets. As of mid-October, Ethena reported a collateralization ratio of 101.43%, with approximately $4.83 billion in backing supporting $4.76 billion in outstanding USDe.