Ethena Labs partners with Trump World Liberty Financial project
Ethena Labs today announced a partnership with President-elect Donald Trump's project, World Liberty Financial (WLFI).
Ethena has entered into a strategic partnership with @worldlibertyfi
— Ethena Labs (@ethena_labs) December 18, 2024
A governance proposal has been submitted to add sUSDe to WLFI's upcoming Aave instance as a core collateral asset pic.twitter.com/jgjd8QGWDS
On Wednesday, the two companies announced that they are considering "long-term collaboration," which will begin with the implementation of sUSDe, Ethena's yield-bearing token.
Ethena Labs and WLFI collaboration
The aim of this collaboration is to make sUSDe a suitable collateral asset for the Aave v3 instance offered by WLFI. By adding sUSDe to the instance, it will be able to benefit from Ethena's TVL and user base in addition to the utility of facilitating a rise in stablecoin deposit usage. If the plan is approved, the Ethena Foundation has committed to co-incentives for sUSDe deposits, which will enable further market expansion, the post added. This week, the governance of World Liberty Financial will be asked to make a decision on the measure.
According to a statement from World Liberty Financial and Ethena, since its onboarding to Aave Core and Aave's Lido instance in mid-November, sUSDe has experienced significant growth in the Aave markets, reaching approximately $1.2 billion in supplied assets in less than a month. Since sUSDe is a popular collateral asset for borrowing stablecoins like USDC and USDT, the integration would also help increase stablecoin deposits in the instance at the same time.
As of November 29, Ethena's USDe market capitalization exceeded $4.3 billion, according to a recent CoinGecko report. CCData's analysis stated that the Ethena ecosystem's proposal to implement revenue sharing for Ethena (ENA) token holders is what has caused this growth.
World Liberty Financial continues to expand
The public token sale for World Liberty Financial, a decentralized lending platform that was introduced in September, started in October. It may be Trump's biggest move into the cryptocurrency space, which he previously criticized. In addition to aligning himself with cryptocurrency interests in recent months, the incoming U.S. president has hinted that he would lessen regulation of the digital assets industry.
Since the former president was picked to return to the White House in November, the DeFi platform seems to be gaining traction. Justin Sun, the founder of Tron, was named an advisor by World Liberty Financial at the end of last month. That move came after Sun-affiliated cryptocurrency exchange HTX invested $30 million in World Liberty.
World Liberty Financial buys over $600,000 of ENA
The announcement on Wednesday follows World Liberty Financial's purchase of over $600,000 worth of ENA tokens. According to Yu Jin, a blockchain data analyst, the DeFi initiative backed by the Trump family made a sizable investment in ENA tokens. At an average price of 0.98 USDT per token, WLFI purchased 509,954 ENA tokens for 500,000 USDC.
World Liberty Financial's recent acquisition is a part of a larger investment strategy. The project has invested $44.41 million in five distinct cryptocurrencies since November 31. Ethena (ENA), Ethereum (ETH), cbBTC, Aave (AAVE), and Chainlink (LINK) are some of these investments. Additionally, stablecoins raised through its October token sale and Justin Sun's $30 million investment are now being converted into important Ethereum-based tokens like ONDO and ENA.
WLFI's dedication to portfolio diversification and strengthening its position in the decentralized finance industry is demonstrated by the strategic acquisition of these digital assets.
Ethena Labs launches new stablecoin
With a new stablecoin backed by BlackRock, Ethena Labs has entered the race to launch stablecoins. USDtb, the new stablecoin, is supported by the USD Institutional Digital Liquidity Fund from BlackRock. Furthermore, leading real-world asset tokenization company Securitize is collaborating with USDtb to launch the stablecoin.
USDtb, like other popular coins, is a regular stablecoin. It functions similarly to other fiat-backed stablecoins, such as Circle's USDC and Tether. The primary distinction between USDtb and other stablecoins is that the former makes BlackRock's BUILDL the recipient of 90% of its reserve. Compared to USDe, Ethena's flagship token, USDtb has a totally different risk profile and more leverage than the traditional stablecoin option.
About Ethena Labs
Built on Ethereum, Ethena is a synthetic dollar protocol that offers USDe, a cryptocurrency that is denominated in dollars. After USDT and USDC, the supply of USDe has increased to almost $6 billion in TVL, making it the third-largest dollar-denominated cryptocurrency asset in the world.
Since its early 2024 launch, Ethena has expanded quickly to rank among DeFi's most integrated protocols. Ethena collaborates closely with Sky, Pendle, Morpho, Curve, EigenLayer, Aave, and EtherFi. In addition, Binance Labs, Fidelity Ventures, OKX Ventures, Dragonfly, Bybit, and Franklin Templeton have all invested in Ethena Labs.
Disclaimer
This information should not be considered financial advice by any means. Please do your own research before making any investment decisions. The views in the articles are personal opinions only. Whale Insider is not responsible for any financial losses incurred.