Strategic Partnership Aims to Integrate sUSDe Token with Aave Instance
On December 18, decentralized finance (DeFi) protocol Ethena announced a strategic partnership with Donald Trump-backed World Liberty Financial. This collaboration seeks to integrate Ethena’s sUSDe token, a staked version of its USDe ‘synthetic dollar’, with World Liberty Financial’s Aave instance.
Enabling Users to Benefit from Dual Rewards
Through this integration, users will be able to deposit USDe and receive rewards in both sUSDe and World Liberty’s WLF token. The partnership aims to increase stablecoin liquidity and utilization rates on the protocol by leveraging the benefits of sUSDe’s integration with Aave’s Core instance.
Proposal to Onboard sUSDe
Ethena Labs announced the partnership through an official proposal posted on their X account, which reads:
‘Should it pass, this proposal will enable World Liberty Financial 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.’
Official Proposal Details
According to a post on the community forum, Ethena Labs Research submitted an official proposal to the World Liberty Financial community on December 18, asking for approval to implement sUSDe ‘as the first new collateral asset to the World Liberty Financial market’. The proposal highlights that sUSDe has already passed risk analysis on the Aave Core and Lido instances.
Co-Incentivizing Supply of sUSDe
If the proposal is implemented, the Ethena Foundation says it will ‘co-incentivize supply of sUSDe to come to the instance via its points program’ to support the aforementioned dual rewards stream for users.
Related News: Ethena’s USDe Beats DAI to Become 3rd-Largest Stablecoin
The partnership comes at a tumultuous time for World Liberty Financial, which has yet to find its footing among more established industry players. As Cointelegraph reported, the president-elect’s crypto business endeavor was met with skepticism and failed to gain significant traction in its first few weeks of operation.
The Trump Bump?
In its first 24 hours of trading after launching on October 16, only 848.63 million WLFI ($12.7 million worth based on the presale price) was sold, leaving an additional 19.1 billion coins (worth approximately $287 million) unsold. This lackluster performance raised concerns about World Liberty Financial’s potential for success.
Justin Sun’s Involvement
However, on November 26, the company saw a significant influx of cash as Justin Sun, a cryptocurrency entrepreneur and somewhat controversial figure in the community, became World Liberty’s largest single token holder after purchasing $30 million worth of WLF. This move sparked renewed interest in the project.
Spending Capital Wisely?
Less than a week after Sun’s purchase, the company went to work spending the capital with purchases of Ether (ETH), AAVE (AAVE), ENA (ENA), ONDO (ONDO), Chainlink (LINK), and cbBTC. These purchases equaled roughly $30 million at the time of purchase.
What Does This Mean for World Liberty Financial?
This partnership between Ethena and World Liberty Financial may be seen as a strategic move to revitalize interest in World Liberty’s WLF token. By leveraging the benefits of sUSDe’s integration with Aave, users will have access to dual rewards streams, which could potentially increase adoption and utilization rates.
Key Takeaways
- Ethena has partnered with World Liberty Financial to integrate its sUSDe token with Aave.
- The partnership aims to increase stablecoin liquidity and utilization rates on the protocol.
- Users will be able to deposit USDe and receive rewards in both sUSDe and WLF tokens.
- Ethena Labs Research submitted a proposal to implement sUSDe as the first new collateral asset to the World Liberty Financial market.
By exploring these key points, we can better understand the implications of this partnership on the DeFi space.
