eUSD is a rate-adjusting stablecoin issued by the Ethena protocol, engineered to maintain a $1 peg while dynamically adjusting its interest rate in response to market conditions. Unlike traditional fixed-yield stablecoins, eUSD targets stability through a backing basket of USDC and staked ETH derivatives, allowing it to generate yield for holders without relying on external borrowing or algorithmic minting/burning mechanics.
On Base, eUSD is integrated into the Aerodrome ecosystem, where it forms liquidity pools with other stablecoins such as USDC, FRXUSD, and HYUSD. These pools collectively hold over $1 million in total value locked, with base APYs hovering around 0.29% in the USDC-EUSD pair, reflecting its role as a yield-bearing stable asset within the chain’s DeFi landscape.
The token currently trades at approximately $0.9987, indicating a tight adherence to its intended peg. Its presence across multiple stablecoin pairs suggests it is being used as a base asset for stable-to-stable liquidity provision and yield farming on Base.