Ethena Labs partners with World Liberty Financial for $500,000 deal

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Grafa2024/12/19 05:50

By:Mahathir Bayena

Ethena Labs announced a new partnership with Donald Trump-backed World Liberty Financial on December 18, 2024.

The collaboration will integrate Ethena’s (CRYPTO:ENA) staked synthetic dollar (sUSDe) token into World Liberty Financial’s (CRYPTO:WLFI) Aave (CRYPTO:AAVE) instance.

This integration will allow users to deposit USDe and earn rewards in both sUSDe and World Liberty’s WLF token.

The integration aims to increase stablecoin liquidity and utilisation rates within the protocol, similar to the effect of sUSDe’s integration into Aave’s Core instance.

"Should it pass, this proposal will enable World Liberty Financial users to benefit from sUSDe rewards and also WLF token rewards," according to an announcement on X.

Ethena Labs submitted an official proposal to the World Liberty Financial community on December 18, requesting approval to implement sUSDe as the first new collateral asset for the platform.

The sUSDe token has already passed risk analysis on Aave Core and Lido instances.

If approved, the Ethena Foundation plans to co-incentivise the supply of sUSDe to the platform using its points program, supporting the dual rewards stream for users.

The announcement comes shortly after World Liberty’s purchase of $500,000 worth of ENA tokens.

The partnership occurs at a challenging time for World Liberty Financial.

The company has faced difficulties establishing its position in the market, with early sales of its WLFI token falling short of expectations.

In its first 24 hours, the company sold only 848.63 million WLFI tokens, valued at $12.7 million, leaving 19.1 billion tokens unsold.

However, the company saw a boost when cryptocurrency entrepreneur Justin Sun purchased $30 million worth of WLF tokens, becoming the largest tokenholder.

Shortly after, World Liberty began spending this capital on various assets, including Ether (CRYPTO:ETH), AAVE, ENA, and Chainlink (CRYPTO:LINK).

At the time of reporting, the price of Ethena (ENA) was $1.17.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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