News Scrap

KeyTakeaways:

WLFI partners with Ethena to integrate sUSDe token for DeFi growth.
sUSDe’s success boosts WLFI’s stablecoin borrowing opportunities.
WLFI’s collaboration with Ethena strengthens DeFi presence, backed by key investments.

World Liberty Financial (WLFI), the decentralized finance (DeFi) platform backed by President Donald Trump, is making strides in the crypto market with a new collaboration with Ethena Labs.

The partnership, which is expected to launch with the implementation of the yield-bearing token sUSDe, could mark a step forward for both companies. WLFI’s governance will vote on the proposal this week, deciding whether to incorporate sUSDe into the protocol.

Should it pass, this proposal will enable @worldlibertyfi 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 (@ethena_labs) December 18, 2024

The primary focus of this partnership is integrating sUSDe as collateral on WLFI’s platform. The DeFi protocol plans to leverage sUSDe’s success. Since its onboarding in mid-November, sUSDe has already seen strong growth in Aave markets, with over $1.2 billion in supplied assets.

By including sUSDe in its Aave instance, WLFI benefits from the token’s increasing popularity, potentially attracting more stablecoin deposits and expanding its user base. If approved, the integration would allow users to borrow stablecoins like USDC and USDT using sUSDe as collateral.

WLFI has expressed confidence in the partnership but declares that if the governance does not approve the Aave instance or the sUSDe collateral, they will continue to explore other collaboration opportunities with Ethena. The two companies have emphasized their commitment to finding ways to work together long-term, irrespective of the outcome of the current proposal.

Strategic Moves and New Developments

The alliance with Ethena is one of several moves to strengthen WLFI’s position in the DeFi space. In November, WLFI appointed Tron founder Justin Sun as an advisor, a decision that followed a $30 million investment from HTX, a crypto exchange associated with Sun.

Additionally, WLFI’s recent acquisition of $600,000 worth of ENA tokens signals its belief in the long-term viability of the Ethena network. According to WLFI co-founder Zak Folkman, collaborating with Ethena brings the company closer to its goal of democratizing financial tools for a global user base.