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Decentralized finance (DeFi) platform Ethena has revealed a collaboration with World Liberty Financial, a project backed by Donald Trump, aiming to enhance stablecoin utility and liquidity. Announced on December 18, the partnership will incorporate Ethena’s staked USDe token (sUSDe) into World Liberty Financial’s Aave-based platform.
Inside Ethena Labs & Donald Trump’s WLFI Partnership
This initiative allows users to stake USDe and earn dual rewards in sUSDe and World Liberty Financial’s native WLF token. According to an announcement on X, the crypto firm’s proposal aims to “enable World Liberty Financial users to benefit from sUSDe rewards and also WLF token rewards.” The statement added that the integration would improve liquidity and stablecoin utilization on the protocol, echoing Ethena’s success with Aave’s core instance.
Ethena Labs Research proposed sUSDe as the first new collateral asset for the World Liberty Financial market. Shared on the project’s forum, the proposal highlights that sUSDe has already undergone rigorous risk evaluations on platforms like Aave Core and Lido. If approved, Ethena plans to incentivize the initiative through its points program, supporting dual rewards for participants.
Ethena has entered into a strategic partnership with @worldlibertyfi
A governance proposal has been submitted to add sUSDe to WLFI’s upcoming Aave instance as a core collateral asset pic.twitter.com/jgjd8QGWDS
— Ethena Labs (@ethena_labs) December 18, 2024
World Liberty Financial has faced challenges since its October 16 launch, with only $12.7 million worth of its WLFI token sold during its debut. Despite a slow start, the project received a significant boost when Justin Sun, a well-known figure in the crypto world, invested $30 million in WLF tokens on November 26.
Following Sun’s investment, World Liberty Financial allocated roughly $30 million to acquire assets such as ETH, AAVE, and LINK, signaling efforts to strengthen its market position. Whether this new partnership with Ethena will mark a turning point for the project remains to be seen.
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