Ethena (ENA), a decentralized finance platform, has announced a strategic partnership with World Liberty Financial (WLFI), a cryptocurrency project associated with former President Donald Trump. The collaboration centers around a proposal to integrate Ethena’s stablecoin, sUSDe, into WLFI’s forthcoming Aave v3 instance.
This proposed integration aims to leverage sUSDe as a core collateral asset within WLFI’s decentralized lending platform. If approved by Aave governance, WLFI users would be able to earn rewards in both sUSDe and WLF, World Liberty Financial’s native token. The move is expected to boost stablecoin liquidity and utilization rates on the platform, mirroring the positive impact sUSDe has had on Aave’s main instance.
The proposal highlights several key benefits:
- Increased Liquidity and Utilization: Introducing sUSDe is projected to attract both capital and users from the Ethena ecosystem, driving higher utilization rates for stablecoin deposits within the WLFI platform.
- Dual Reward Incentives: The Ethena Foundation has committed to providing additional incentives for sUSDe deposits through its points program, supplementing the existing sUSDe reward APY and offering WLFI users a double reward opportunity.
- Path to Aave E-Mode: The increased liquidity facilitated by sUSDe could pave the way for activating Aave’s E-Mode on the WLFI instance, further enhancing the platform’s capabilities. The proposal also seeks pre-approval for sUSDe’s eligibility within E-Mode.
- Competitive Advantage: The combined rewards of WLF tokens and Ethena points aim to create a compelling incentive for users to choose WLFI for their decentralized finance activities.
The proposal emphasizes that sUSDe has already undergone successful risk assessments on both Aave’s Core and Lido instances. However, final market configurations for WLFI will be determined by the Risk Service Providers supporting the platform.
