World Liberty Financial and Ethena Labs Collaboration

World Liberty Financial, a DeFi project supported by President-elect Donald Trump, is making strides with established crypto firms, particularly through its collaboration with Ethena Labs.

On Wednesday, both firms announced a focus on a “long-term collaboration,” starting with Ethena’s yield-bearing token, sUSDe.

Goals of the Collaboration

According to a statement, “As a first step in the collaboration, Ethena and WLFI will explore the potential implementation of sUSDe as the first new token available as collateral on the WLFI protocol, backed by Aave.”

This integration aims to leverage Ethena’s significant Total Value Locked (TVL) and its user base for WLFI’s upcoming Aave instance.

Governance Approval

World Liberty Financial’s governance will need to decide on this initiative this week.

In the event that the governance does not approve the WLFI Aave instance or sUSDe as a collateral asset, both firms intend to continue seeking collaborative opportunities, emphasizing their commitment to integration.

Recent Developments

Since Donald Trump’s election win in November, World Liberty Financial has been gaining momentum. Recently, it appointed Tron founder Justin Sun as an advisor, following a $30 million investment from HTX, a crypto exchange associated with Sun.

“sUSDe has experienced strong growth in the Aave markets since its onboarding to Aave Core and Aave’s Lido instance in mid-November, reaching ~$1.2 billion in supplied assets in under a month,” stated both companies. This integration is expected to boost stablecoin deposits, leveraging sUSDe’s attractiveness as collateral for borrowing stablecoins like USDC and USDT.

Acquisition of ENA Tokens

In addition, World Liberty Financial has recently acquired $600,000 worth of ENA tokens. Although this purchase is “not directly connected to the collaboration,” it reflects the company’s confidence in Ethena’s potential, according to Co-founder Chase Herro.

Co-founder Zak Folkman noted, “Collaborating with Ethena Labs brings us closer to democratizing access to financial tools that deliver better experiences and greater accessibility for users worldwide.”

Overview of World Liberty Financial

Launched in September, World Liberty Financial is a decentralized lending platform that began its public token sale in October. This venture signifies Trump’s significant engagement in the crypto space, an industry he previously criticized, and his intention to reduce regulations affecting digital assets.