Ethena Labs has announced a strategic partnership with Donald Trump-backed World Liberty Financial (WLF).
As part of the collaboration, Ethena aims to integrate its sUSDe token, a staked version of its USDe synthetic dollar, into WLF’s forthcoming Aave v3 instance.
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
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Governance proposal to onboard sUSDe as a collateral asset for WLF
As revealed in the announcement on December 18, Ethena Labs has submitted a governance proposal to onboard sUSDe as the first collateral asset for WLF’s market.
The governance proposal outlines multiple benefits for the integration of sUSDe. It cites the token’s proven ability to boost stablecoin deposit rates and attract capital flows.
On Aave Core, sUSDe’s integration increased supply rates for stablecoins like USDC, USDT, and USDS, creating a multiplier effect that benefited liquidity providers.
Ethena’s co-incentive program promises additional rewards for users depositing sUSDe, amplifying the appeal for WLF users.
Moreover, the proposal seeks to align WLF’s rates with broader DeFi market standards.
Poor relative rates could hinder WLF’s ability to attract deposits, but sUSDe’s integration positions the platform to compete effectively.
The Ethena Foundation has also committed to co-incentivizing sUSDe deposits through its points program, further encouraging market growth.
If approved, this integration will enable users to deposit USDe and earn dual rewards in sUSDe and WLF tokens.
Ethena’s sUSDe has demonstrated remarkable performance on other platforms, such as Aave Core and Lido, where it reached $1.2 billion in supplied assets in under a month.
Its introduction to WLF’s market is expected to enhance stablecoin liquidity and utilization rates, potentially solidifying WLF as a premier platform for stablecoin lending and borrowing.
World Liberty Financial aims to tap into Ethena’s extensive DeFi network
The partnership comes at a pivotal moment for WLF, which has faced challenges in establishing itself among DeFi’s major players.
Following a lacklustre launch in October, the platform sold just $12.7 million of its WLFI tokens, leaving a substantial portion unsold.
However, a $30 million investment by cryptocurrency entrepreneur Justin Sun in November provided a financial boost, enabling WLF to acquire assets such as ETH, AAVE, ENA, and most recently ONDO.
This collaboration with Ethena is seen as a potential turning point.
By integrating sUSDe, WLF hopes to tap into Ethena’s extensive DeFi network and leverage its successful track record.
Ethena, supported by prominent backers like Binance Labs and Fidelity Ventures, has rapidly grown since its launch in early 2024, achieving nearly $6 billion in total value locked (TVL), and the partnership will reinforce its role as a key player in driving innovation across the DeFi ecosystem.
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