World Liberty Financial (WLF), a platform for decentralized finance (DeFi) backed by Donald Trump as president-elect, will work with Ethena Labs in order to improve its ecosystem.
The two companies have announced a long-term partnership, starting with the possible implementation of Ethena’s yield-bearing sUSDe token as a collateral in WLFI’s forthcoming instance Aave protocol.
Integration Proposal: Ethena and World Liberty Financial aim to expand stablecoin usage
A governance proposal was submitted to facilitate integration. If approved, users of WLFI can now access WLF tokens and sUSDe rewards.
According the proposal the initiative is expected boost stablecoin liquid and usage of the protocol replicating the success sUSDe has had in Aave Core and Lido instances.
The companies highlighted the potential impact of the initiative in a joint press release, explaining that integrating sUSDe would boost stablecoin deposit within WLFI’s Aave instance.
sUSDe’s growth has been rapid since its onboarding into Aave last November. It reached $1.2billion in assets supplied in just one month.
In a statement, the team stated:
Both firms are committed to exploring alternative avenues of collaboration in the event that WLFI governance rejects the Aave instance, or the use sUSDe collateral.
The integration of stablecoins has led to a significant increase in the supply and deposit rates for USDC, USDT and USDS. The World Liberty Financial (WLFI), governance body, is expected to vote this week on the measure.
If approved, sUSDe will be integrated into WLFI’s future instance of the Aave Protocol, allowing it to access Ethena’s established user base and significant Total Value Locked (TVL).
Ethena users and stablecoin deposits will be able to benefit from WLFI’s increased usage. Ethena Foundation is committed to rewarding deposits of sUSDe.
Users of WLFI will also receive WLF tokens for deposits made in sUSDe.
This proposal includes pre-approving the eligibility of sUSDe for E-Mode, and aligning this with risk configurations established by Aave’s risk managers.
Trump’s Crypto Pivot – World Liberty Financial Shakes up DeFi
World Liberty Financial is Donald Trump’s largest venture into the cryptocurrency industry, which he has previously criticized.
Since his November election, Trump has become more cryptocurrency-friendly and indicated his intention to reduce regulations in the digital asset sector.
WLFI was launched in September to democratize the access to Decentralized Finance (DeFi). It began its public sale of tokens in October, signaling the company’s intention to grow within DeFi.
WLFI has made a number of strategic decisions. The platform appointed Justin Sun as an advisor at the end of November. The investment was followed shortly by $30m from HTX a crypto exchange associated with Sun.
WLFI’s digital assets portfolio has also been significantly expanded.
Since November 30, the wallet has purchased $44.75 Million in token purchases this month.
