EtherFi has been integrated across Plasma’s DeFi ecosystem, providing users with additional collateral options for lending and borrowing.
A strategic partnership was announced on August 29 by Bitfinex-backed Plasma with EtherFi, positioning the stablecoin-focused neobank as a day-one launch partner for the blockchain’s mainnet beta.
Over $500 million will be transferred from EtherFi’s Ethereum (ETH) staking vault to Plasma’s platform, providing liquidity for stablecoin-backed yield strategies.
The collaboration integrates EtherFi across Plasma’s DeFi ecosystem, providing users with additional collateral options for lending and borrowing while offering access to ETH-backed yield products.
Plasma’s announcement emphasized how the partnership complements both platforms’ objectives in the stablecoin infrastructure space. The protocol stated:
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“Stablecoins give everyone, everywhere permissionless access to the financial service of saving money safely and reliably.”
EtherFi is the sixth-largest DeFi protocol, with a total value locked of over $11 billion as of August 29. An all-time high of nearly $12.6 billion was reached by the protocol on August 14.
Building Stablecoin Infrastructure: A New Era for Decentralized Finance
Plasma operates as a Bitcoin sidechain with full Ethereum Virtual Machine (EVM) compatibility, engineered specifically for stablecoin payments and cross-border transactions.
Zero-fee USDT transfers are offered by the platform through a dual-validator architecture that processes gasless transactions.
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Recent market activity demonstrates significant institutional interest in Plasma’s approach. $1 billion in deposits were raised by the platform within 30 minutes during its June expansion, with 70% of funds concentrated among the top 100 wallets according to analytics firm Sealaunch.
Initial deposits in June totaled $500 million, with over 1,100 participating wallets.
Further, Plasma is backed by high-profile names. The protocol’s $24 million funding round attracted backing from Framework Ventures, Bitfinex, Peter Thiel’s Founders Fund, and Tether CEO Paolo Ardoino.
Plasma Integrates EtherFi into its DeFi Ecosystem
The EtherFi partnership extends beyond simple vault migration. Plasma users will be able to leverage EtherFi’s liquid staking tokens as collateral while accessing stablecoin features, including custom gas tokens and confidential transactions.
Additionally, the partnership positions both platforms to capture the growing demand for stablecoin infrastructure as the sector surpasses a total supply of $280 billion.
Former BitMEX CEO Arthur Hayes recently noted that EtherFi is one of three DeFi protocols that could capture significant value from the expansion of US dollar-pegged stablecoins.
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EtherFi’s commitment to move $500 million in ETH staking assets represents confidence in Plasma’s technical architecture and market positioning within the expanding stablecoin ecosystem.
