Ethena Labs has announced a strategic partnership with World Liberty Financial (WLFI), a decentralized finance (DeFi) project supported by President-elect Donald Trump. This collaboration aims to improve stablecoin liquidity and enhance user rewards on WLFI’s platforms. A governance proposal has been submitted to integrate Ethena’s stablecoin, sUSDe, as core collateral on WLFI’s new Aave platform.
However, the move is a strategic direction for both platforms as they seek to consolidate their place in the DeFi sector. WLFI users will be benefited with better funding. They would also have chances to be incentivized in sUSDe and WLFI tokens. This move comes after sUSDe posted $1.2 billion in assets on Aave Core in a single month.
Key Details of the Collaboration
The collaboration between Ethena and WLFI consists of getting sUSDe to be the first collateral asset added in WHFI’s Aave protocol. The proposal is likely to receive a vote by WLFI’s governance community during this week. If passed, sUSDe will act as a security that will be used by users to acquire other stablecoins such as USDC and USDT.
According to Ethena Labs, this integration will significantly boost liquidity and utilization rates within WLFI’s ecosystem. The growing adoption of sUSDe in DeFi platforms aligns with Ethena’s goal to expand its market presence and user base.
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
“Introducing sUSDe into WLFI’s forthcoming Aave instance would enable the instance to benefit from the large TVL and user base of Ethena,” the two companies stated.
Ethena also highlighted the report as forming a long-term partnership, implying more synergies are in the planning. Although the proposal has not been given a green light. Both WLFI and Ethena said that they are open to searching for other means of synchronizing ecosystems and bringing more value to the users.
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World Liberty Financial’s Growing Presence in Crypto
World Liberty Financial has gained much traffic since its launch in September. This rapid growth is driven by strong support from President-elect Donald Trump. The platform’s public token sale began in October, representing Trump’s growing association with the cryptocurrency sector.
WLFI has been actively building partnerships to enhance its ecosystem. There have been notable moves such as appointing Tron founder Justin Sun as an advisor and securing a $30 million investment from Sun’s HTX exchange.
This partnership with Ethena Labs further strengthens WLFI’s claim to DeFi utility. WLFI co-founder Zak Folkman stated, “Collaborating with Ethena Labs brings us one step closer to democratizing access to financial tools that deliver better experiences and greater accessibility for users around the world.”
Besides the working partnership, WLFI bought 600 000 ENA tokens just evidence of Ethena’s sustainability in future. Although this is a separate purchase, it highlights WLFI’s trust in the stability and future growth of the Ethena network.
ENA Price and Market Analysis
The news has emerged while the price of Ethena’s native token, the ENA, continues to experience increased fluctuations. Asp per now, ENA has been traded between $1.05 and $1.14. It has shown a sharp decline before getting back to $1.12.
Although the prices have reduced, trading volume has increased by 17.81% to $528.99 million which signifies that the market is more active. Ethena’s market value is $3.3 billion, and it has $6.02 billion Total Value Locked in the platform, showing its effectiveness.
Future Outlook and Impact on ENA Price
The partnership between Ethena and WLFI will likely bring more focus to both platforms. Adding sUSDe as collateral on WLFI’s Aave instance could bring in new users and increase demand for Ethena’s stablecoin. As a result, ENA’s price may rise as more people gain confidence in the market.
With WLFI’s governance vote set to take place this week, traders and investors will closely watch the outcome for potential market movements. The partnership’s success depends on the approval of sUSDe as collateral, which could unlock new liquidity opportunities and solidify Ethena’s position in the DeFi market.
