In a strategic move, decentralized finance (DeFi) protocol Ethena has announced a partnership with Donald Trump-backed World Liberty Financial on December 18. This collaboration aims to integrate Ethena’s sUSDe token—a staked version of its USDe ‘synthetic dollar’—with World Liberty Financial’s Aave instance, enabling users to deposit USDe and receive rewards in both sUSDe and World Liberty’s WLF token.
The Partnership Details
Ethena Labs announced the partnership on social media platform X. According to their announcement:
"Should it pass, this proposal will enable World Liberty Financial users to benefit from sUSDe rewards and also WLF token rewards. This integration will increase stablecoin liquidity and utilization rates on the protocol, as sUSDe’s integration has on Aave’s Core instance."
Proposal to Onboard sUSDe
The Ethena Labs Research account submitted an official proposal to the World Liberty Financial community on December 18, asking for approval to implement sUSDe ‘as the first new collateral asset to the World Liberty Financial market.’ According to a post on the community forum, sUSDe has already passed risk analysis on the Aave Core and Lido instances. If the proposal is implemented, the Ethena Foundation says it will ‘co-incentivize supply of sUSDe to come to the instance via its points program’ to support the aforementioned dual rewards stream for users.
The Trump Bump?
The partnership comes at a tumultuous time for World Liberty Financial, which has yet to find its footing among more established industry players. As Cointelegraph reported earlier, the president-elect’s crypto business endeavor was met with skepticism at its launch. In its first 24 hours of trading after launching on October 16, only 848.63 million WLFI ($12.7 million worth based on the presale price) was sold, leaving an additional 19.1 billion coins (worth approximately $287 million) unsold.
However, on November 26, the company saw an influx of cash as Justin Sun, a cryptocurrency entrepreneur and somewhat controversial figure in the community, became World Liberty’s largest single token holder after purchasing $30 million worth of WLF. Less than a week after Sun’s purchase, the company went to work spending the capital with purchases of Ether (ETH), AAVE (AAVE), ENA (ENA), ONDO (ONDO), Chainlink (LINK), and cbBTC equaling roughly $30 million at the time of purchase.
Background on Ethena
Ethena is a decentralized finance protocol that offers a suite of financial services, including lending, borrowing, and staking. Their USDe token has gained significant traction in the market, becoming the third-largest stablecoin. This partnership with World Liberty Financial aims to further increase the adoption and utilization of sUSDe within the DeFi ecosystem.
The Future of Stablecoins
The integration of sUSDe with World Liberty Financial’s Aave instance is expected to increase stablecoin liquidity and utilization rates on the protocol. As the DeFi market continues to grow, the demand for stablecoins like USDe is expected to rise. This partnership may signal a new era in the development of decentralized finance protocols.
What Does This Mean for Users?
For users of World Liberty Financial, this integration means they will be able to deposit USDe and receive rewards in both sUSDe and WLF token. This dual rewards stream is expected to incentivize users to hold more sUSDe, increasing the liquidity and utilization rates on the protocol.
Conclusion
The partnership between Ethena and World Liberty Financial marks a significant development in the DeFi space. As the demand for stablecoins continues to grow, this integration may signal a new era of growth and adoption for decentralized finance protocols. With the Ethena Foundation co-incentivizing the supply of sUSDe, users can expect increased rewards and benefits from holding this token.
Related Articles
- Ethena’s USDe beats DAI to become 3rd-largest stablecoin
- The Trump bump? World Liberty Financial’s crypto business endeavor
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