Ethena Labs Partners with Trump-Backed World Liberty Financial (WLFI)

As a seasoned researcher with a keen eye for emerging trends and partnerships in the blockchain space, I find this collaboration between Ethena Labs and World Liberty Financial (WLFI) intriguing. With my background in understanding the nuances of DeFi projects and stablecoins, I can see the strategic value this partnership brings to both parties.

Today, Ethena Labs unveiled its collaboration with World Liberty Financial (WLFI), a financial project tied to Donald Trump’s tokens. As part of this alliance, the stablecoin sUSDe from Ethena will be listed as a secure asset for lending on WLFI’s Aave v3 platform.

In this alliance, both companies stand to gain. Ethena Labs can explore a fresh application for their sUSDe token, while WLFI acquires a collateral asset that Aave Core has previously assessed and deemed safe.

Ethena and WLFI Partner Up on Aave

As per the recent announcement, this partnership is associated with a fresh governance idea for WLFI. If this proposal gets approved, then sUSDe – a staked variant of Ethena Labs’ USDe stablecoin – will be integrated as a key collateral asset within WLFI’s Aave platform.

If this proposal is approved, WLFI users will have the opportunity to earn both sUSDe rewards and WLF token rewards. This integration aims to boost stablecoin liquidity and usage rates within our protocol, similar to how sUSDe’s integration has impacted Aave’s Core instance, as stated on platform X (previously known as Twitter).

Despite WLFI facing significant challenges during an unsuccessful presale launch, Donald Trump’s election win has attracted fresh investment funds.

Last week, WLFI invested $1 million into Aave’s AAVE governance/utility token, which boosted its value by approximately 30%. The protocol has planned an Aave instance launch since October.

This week, Ethena Labs introduced their new stablecoin called USDtb. This coin is supported by BlackRock’s tokenized fund BUIDL, which has fueled excitement and caused a distinct surge in the market for ENA.

On the other hand, this “strategic alliance” might generate beneficial earnings for both entities. According to WLFI’s governance proposal, sUSDe has previously undergone a risk assessment on Aave core and is expected to clear a similar evaluation for the newly established instance.

If the WLFI proposal is approved, Ethena will work together to motivate depositing sUSDe onto the Aave platform as well.

By depositing sUSDe into the Aave platform managed by WLFI, it will allow WLFI to leverage Etherna’s total value locked (TVL) and user base. In return, Etherna will acquire an additional application for its sUSDe token, thereby enhancing stablecoin liquidity and boosting overall usage levels.

Via this straightforward collaboration, Ethena manages to enhance the earnings potential of its yield-generating token, allowing it to concentrate on constructing and marketing its additional products in the process.

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2024-12-18 22:04