In an update on X, World Liberty Financial (WLFI) shared news about a long-term partnership with Ethena Labs.
The integration will initially start by adding Ethena’s yield-bearing token, sUSDe, into the WLFI ecosystem. Ethena will be the first token allowed for usage as collateral within the WLFI platform and will run using the Aave backend. Ethena’s Total Value Locked (TVL) and user base is bound to elevate the Aave setup.
The partnership will start by looking into using sUSDe as collateral. This could help WLFI’s Aave instant access to the Ethena’s Total Value Locked (TVL) and many users. WLFI’s governance will decide this week if they will allow the use of sUSDe as collateral.
“In the unlikely event that the WLFI Aave instance is not approved by governance, or sUSDe is not approved as a collateral asset, WLFI and Ethena would continue to explore opportunities to collaborate,” the companies said.
Ethena’s token, sUSDe, was added to Aave markets in the middle of November the year. In less than a month, it has grown up to around $1.2 billion in assets. If the integration works out, that would also likely increase stablecoin deposits on the WLFI platform, as many people like to use sUSDe as collateral to borrow stablecoins like USDC and USDT.
This collaboration follows a series of events from WLFI. Recently, the platform appointed Tron founder Justin Sun as an advisor and secured a $30 million investment from HTX, a crypto exchange tied to Sun.Â
Additionally, WLFI has acquired $600,000 worth of ENA tokens from Ethena. Although the purchase isn’t directly tied to the collaboration, it reflects WLFI’s belief in the success of the Ethena network.
World Liberty Financial was founded in September 2024, with its public token sale launched in October. Although Trump has publicly criticized cryptocurrencies in the past, his position in WLFI shows he is leaning toward supporting the crypto market and could ease rules on digital assets.
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