Compound Finance is expanding its DeFi offerings by adding Ethena's stablecoin USDe and Mantle's liquid staking token mETH as collateral options. This move, approved by tokenholders on January 8, highlights the growing adoption of yield-bearing stablecoins and Ether LSTs. Compound, a leading DeFi protocol on Ethereum, boasts over $2.7 billion in total value locked (TVL).

DeFi's TVL is nearing 2021 highs, driven by LSTs and LRTs like mETH and cmETH. As of January 9, DeFi TVL reached $117 billion, a 150% year-to-date increase. Meanwhile, Ethena's USDe has become the third-largest stablecoin, offering attractive yields to investors.