Today, Ethena Labs announced that it has cooperated with World Liberty Financial (WLFI), Donald Trump’s Token project. Both will put up the sUSDe Token from Ethena as collateral on the Aave v3 version of WLFI.
This partnership benefits both companies, as Ethena Labs gains new use cases for the sUSDe Token, and WLFI gains collateral that has passed Aave Core’s risk analysis.
Ethena and WLFI Collaborate on Aave
According to announcementthis collaboration links to a propose New admin on WLFI. If the proposal is approved, sUSDe, the staking version of stablecoin USDe from Ethena Labs, will become the core collateral on WLFI’s Aave version.
“If passed, this proposal will allow WLFI users to benefit from sUSDe rewards as well as WLF Token rewards. This integration will increase stablecoin liquidity and usage across the protocol, as sUSDe did on the Core version of Aave,” the company wrote on X (formerly Twitter).
Although WLFI experienced major difficulties from its failed presale launch, Donald Trump’s election victory helped bring in new investment capital.
Last week, WLFI invested $1 million in Aave’s governance/utility token AAVE, increasing its value by approximately 30%. The protocol has been planning to launch its Aave version since October.
Meanwhile, Ethena Labs launched its new stablecoin, USDtb, earlier this week. This new stablecoin is backed by BlackRock’s BUIDL crypto fund, and the hype surrounding it has created another market rally for ENA.
However, this “strategic cooperation” can bring huge profits to both companies. In the governance proposal, WLFI noted that sUSDe has already passed the risk analysis on Aave core and, therefore, is likely to pass the same check on the new version.
Ethena will also co-sponsor the sUSDe deposit to the Aave instance if WLFI’s proposal is approved.
By bringing sUSDe to its Aave instance, WLFI will benefit from Ethena’s TVL and user base. Ethena will have new use cases for this sUSDe Token, increasing stablecoin liquidity and overall usage rate.
Through this simple partnership, Ethena has found a way to enhance this profitable Token while focusing on building and promoting its other products.
