Derivatives markets linked to defi investing are showing increased open interest, particularly in perpetual futures tied to major DEX indexes. This points to growing speculative capital participation similar to small-cap stock rallies. Ethena USDe was initially minted on the Ethereum (CRYPTO: ETH) blockchain by Ethena Labs. It's supported by a mix of crypto assets (including Ether, Lido Staked Ether , and other tokens) instead of U.S. dollars or Treasuries. Its protocol constantly balances long spot positions in certain crypto assets with short derivative positions (like futures) in other crypto assets to generate gains and losses to remain pegged to the U.S. dollar. “Anyone can provide crypto assets as liquidity or loans through what’s called yield farming that pays the depositor with interest and fees,” says Truffle.vc’s Malka. “Yield farming is how you put your crypto to work in order to earn passive income .” Recent integration of AI-driven trading bots into defi investing platforms boosted swap efficiency by 19%. Market analysts believe automation will be key in maintaining yield competitiveness against traditional ETF products.
