World Liberty Financial (WLFI), a decentralized finance (DeFi) platform, has announced a potential collaboration with Ethena Labs, signaling its ambition to expand its reach within the crypto ecosystem.
The partnership will initially focus on integrating Ethena’s yield-bearing stablecoin, sUSDe, into WLFI’s protocol, leveraging its growing user base and liquidity pools.
Ethena has entered into a strategic partnership with @worldlibertyfi
A governance proposal has been submitted to add sUSDe to WLFI’s upcoming Aave instance as a core collateral asset pic.twitter.com/jgjd8QGWDS
— Ethena Labs (@ethena_labs) December 18, 2024
According to a joint statement released on Wednesday, the collaboration will explore the adoption of sUSDe as a collateral asset within WLFI’s Aave-based lending instance.
This integration aims to capitalize on sUSDe’s rapid growth and reputation as a stable and efficient asset for borrowing and lending activities.
The WLFI governance community is set to vote on these proposed changes. The integration, if approved, could significantly enhance WLFI’s total value locked (TVL) while simultaneously offering increased utility to Ethena’s sUSDe token.
Even in the event of non-approval, the two companies plan to identify other avenues for collaboration.
Ethena Labs highlighted the momentum behind sUSDe, which has seen rapid adoption since its introduction to Aave in November, surpassing $1.2 billion in supplied assets.
The proposed integration into WLFI’s protocol could strengthen stablecoin deposits and align with WLFI’s goal of broadening its DeFi offerings.
World Liberty Financial, launched in September, has quickly established itself in the decentralized lending market.
The project has garnered attention since the appointment of President-elect Donald Trump and the onboarding of prominent industry figures, such as Justin Sun, founder of Tron. In late November, Sun’s HTX exchange committed $30 million to WLFI, further boosting its credibility.
Separately, WLFI has acquired $600,000 worth of Ethena’s ENA tokens, emphasizing its confidence in Ethena’s long-term potential. While the acquisition is unrelated to the partnership, it reflects WLFI’s commitment to supporting key players in the DeFi space.
This strategic partnership underscores WLFI’s efforts to solidify its presence in the DeFi sector and adapt to the shifting regulatory and technological landscape under new U.S. leadership.
