Decentralized finance (DeFi) protocol Ethena announced a strategic partnership with Donald Trump-backed World Liberty Financial on December 18.

This partnership aims to integrate Ethena’s sUSDe token, the staked version of its USDe “synthetic dollar,” with World Liberty Financial‘s Aave instance. This will allow users to deposit USDe and receive rewards in both sUSDe and World Liberty’s WLF token.

Related tweet:

“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.”

Ethena Labs, Proposal to Integrate sUSDe

On December 18, the Ethena Labs Research account submitted an official proposal to the World Liberty Financial community, requesting approval to integrate 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 approved, the Ethena Foundation plans to “co-incentivize the supply of sUSDe to come to the instance through its points program,” thereby supporting the dual rewards stream for users.

The Trump Effect

The partnership comes at a challenging time for World Liberty Financial, which has yet to establish itself among more established industry players. The president-elect’s crypto business venture was a major disappointment at its launch.

In the first 24 hours after its launch on October 16, only 848.63 million WLFI (worth $12.7 million based on the presale price) was sold, leaving about 19.1 billion coins (valued at approximately $287 million) unsold.

On November 26, the company saw a cash influx when cryptocurrency entrepreneur and somewhat controversial figure Justin Sun became World Liberty’s largest single token holder after purchasing $30 million worth of WLF.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Ethena Labs Partners with Trump’s World Liberty Financial! appeared first on Coin Engineer.