Stablecoins are no longer a future concept.
They are already the financial rails for millions of people across emerging and developed markets alike.
What the ecosystem has lacked isn’t adoption — it’s credit infrastructure.
Deposits alone don’t power economies.
Credit does.
This is where Plasma’s Aave deployment fundamentally changed the game.
From Liquidity to Credit
Most DeFi launches optimize for TVL.
Plasma optimized for borrowing efficiency.
By committing $10M in XPL incentives, Plasma aligned liquidity providers and borrowers from day one. The result was immediate:
• $5.9B deposits within 48 hours
• $6.6B peak TVL
• Rapid transition from idle capital to active borrowing
But the most important outcome wasn’t size — it was rate stability.
Why Stable Borrow Rates Matter
In traditional finance, predictable borrowing costs are non-negotiable.
In DeFi, they’re rare.
On Plasma: • USD₮0 borrow rates have remained consistently between 5–6% • Despite massive TVL swings • Despite volatile market conditions
This predictability enables: – Sustainable leverage
– Yield looping without liquidation stress
– Institutional-grade capital planning
At times, net borrow costs dropped to ~4.48%, making positive carry strategies viable across the ecosystem.
Beyond TVL: Measuring Real Credit Demand
TVL shows deposits.
Borrowing shows economic intent.
Plasma’s Aave market generated: • $1.58B in active borrowing • 84.9% utilization on WETH • 84.1% utilization on USD₮0 • 42.5% market-wide utilization
High utilization means liquidity is working — not idle.
This is what separates a speculative market from a real credit market.
USD₮0: The Dollar Backbone
USD₮0 is not just another stablecoin on Plasma.
It is: • The primary unit of account
• The dominant borrowing asset
• The settlement currency across strategies
As of November 2025: • $1.78B supplied
• $1.49B borrowed
• 83.7% utilization
USD₮0 now anchors Plasma’s entire financial layer.
Yielding Collateral: Ethena & Ether.fi
Plasma’s credit market thrives because collateral remains productive.
• sUSDe earns Ethena yield + Aave incentives
• Users borrow USD₮0 against it
• weETH allows borrowing against restaked ETH without giving up yield
This stacking of yield + credit efficiency creates powerful, sustainable strategies.
Why Plasma Became the #2 Aave Market
As of November 26, 2025: • Plasma = 2nd largest Aave market globally • ~8% of all Aave borrowing worldwide • Nearly 2× larger than the #3 market
And this happened without endless asset sprawl — just focused, deep liquidity.
What Comes Next
Credit markets don’t exist in isolation.
Plasma’s next phase connects onchain credit to: • Licensed on/off ramps
• FX liquidity
• Payments & custody
• Merchant settlement
• Cross-border treasury flows
This is where onchain credit becomes real-world financial infrastructure.
The Bigger Picture
Plasma isn’t building for hype cycles.
It’s building the credit layer for stablecoin economies.
Predictable rates.
High utilization.
Real borrowing demand.
This is how global finance moves onchain.
