Ethena Labs’ Liquid Leverage Secures $1.5B Inflows Post-Launch

Ethena Labs launched Liquid Leverage in late July 2025, driving over $1.5 billion in inflows, with Aave raising Ethereum Money Market deposit limits to accommodate the surge.

These developments signify a burgeoning shift in DeFi strategies, enhancing liquidity and yield potential, as market participants respond swiftly to increased investment opportunities.

Ethena and Aave Partnership Fuels $1.5B Inflows

Ethena Labs’ partnership with Aave has introduced Liquid Leverage, a new DeFi product that quickly gathered over $1.5 billion in inflows. This collaboration allows users to engage in leveraged yield strategies by utilizing Aave’s Ethereum Money Market.

To facilitate increased user participation, Aave notably raised deposit limits for sUSD to approximately $350 million and USD to $300 million. This adjustment enables wider user accessibility, thereby supporting these new financial strategies.

Ethena currently accounts for 6-10% of the derivatives market, and I believe it should reach 20-25%, which is $20 to $30 billion, assuming the market does not grow significantly. — Guy Young, Founder, Ethena Labs

Liquid Leverage Mirrors DeFi Expansion Trends

Did you know? Ethena’s strategic partnership mirrors earlier DeFi expansions, such as Maker’s DAI surge in 2021, indicating a foundational shift towards diverse yield opportunities.

Based on CoinMarketCap data, Ethena Staked USDe’s current price is $1.19, with a market cap of $5.01 billion, and 24-hour trading volume reaching $9.73 million, marking a 6.38% increase. The asset’s circulating supply is 4.21 billion, with significant activity recently observed.

Coincu analysts speculate that as stablecoin-backed assets increasingly dominate DeFi, Ethena’s model could prompt regulatory scrutiny similar to prior large DeFi inflows, yet its rapid user adoption signals sustained market interest.