- Ethena and World Liberty Financial, a DeFi platform supported by Donald Trump, are preparing a “long-term collaboration” that will begin with the introduction of the yield-bearing token, sUSDe.
- This week, the governance of World Liberty Financial will be asked to make a decision regarding the implementation.
President-elect Donald Trump’s nascent DeFi initiative, World Liberty Financial, is continuing to gain traction with established cryptocurrency companies, this time through a partnership with Ethena Labs.
On Wednesday, the two companies announced that they are considering “long-term collaboration,” which will begin with the introduction of sUSDe, Ethena’s yield-bearing cryptocurrency.
Ethena and WLFI will investigate the possibility of using sUSDe as the first new token that is accessible as collateral on the WLFI protocol as a first step in their partnership. By adding sUSDe to WLFI’s upcoming Aave instance, the instance would be able to take use of Ethena’s sizable TVL and user base.
This week, the governance of World Liberty Financial will be asked to make a decision on the measure.
With the sole goal of identifying points of integration, WLFI and Ethena would continue to look for ways to work together in the unlikely case that governance rejects the WLFI Aave instance or sUSDe is rejected as a collateral asset.
Since the former president was chosen to return to the White House in November, the DeFi platform seems to be gaining traction. Justin Sun, the founder of Tron, was named an advisor by World Liberty Financial at the end of last month. That action came after Sun-affiliated cryptocurrency exchange HTX invested $30 million in World Liberty.
Since its onboarding to Aave Core and Aave’s Lido instance in mid-November, sUSDe has experienced robust growth in the Aave markets, reaching around $1.2 billion in provided assets in less than a month. Due to sUSDe’s widespread use as collateral for loans of stablecoins like USDC and USDT, the integration would also aid in concurrently increasing stablecoin deposits in the case.
According to the statement, the news on Wednesday follows World Liberty Financial’s purchase of $600,000 worth of ENA. The acquisition of ENA tokens “is not directly related to the partnership [but] demonstrates WLFI’s confidence in the Ethena network’s long-term sustainability and prosperity.”
We are one step closer to democratizing access to financial tools that provide improved experiences and increased accessibility for users worldwide by working with Ethena Labs.
The public token sale for World Liberty Financial, a decentralized lending platform that was introduced in September, started in October. It may be Trump’s biggest move into the cryptocurrency space, which he previously criticized. In addition to aligning himself with cryptocurrency interests in recent months, the incoming U.S. president has hinted that he might lessen regulation of the digital assets industry.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
