Ethena Labs Proposes Partnership With Trump’s DeFi Project
By Philip Maina
13 hours agoThu Dec 19 2024 11:04:48
Reading Time: 2 minutes
- Ethena Labs wants to partner with Trump’s DeFi project World Liberty Financial
- The partnership will see Ethena Labs’ sUSDe token available on World Liberty Financial’s Aave implementation
- The integration will enable sUSDe holders to earn rewards in World Liberty Financial’s token, WLF, and sUSDe
Ethena Labs has proposed integrating its stablecoin with the United States president-elect Donald Trump’s DeFi project World Liberty Financial. Ethena disclosed that the partnership will allow its sUSDe token holders to deposit their funds into World Liberty Financial’s Aave implementation that’s yet to be launched. The integration will see Ethena users interact with World Liberty to earn rewards in sUSDe and World Liberty Financial’s token, WLF, a move that’s likely to increase World Liberty’s usage.
sUSDe Has Passed Risk Analysis
In an X post, Ethana Labs disclosed that they are in talks with World Liberty to make sUSDe “a core collateral asset” in World Liberty’s “upcoming Aave instance.” Apart from enabling users to receive rewards in both tokens, Ethena Labs believes World Liberty will “benefit from the TVL and user base of Ethena.”
Ethena Labs argued that the sUSDe token has “already passed risk analysis” because it’s being used on platforms like Aave Core and Lido. If the proposal is accepted, Ethena Foundation is willing to “co-incentivize supply of sUSDe.”
The partnership proposal comes two months after World Liberty Financial opened its doors to the public and announced its intentions to expand to an Aave . World Liberty said that it’ll offer 20% of the fees generated on the Aave implementation to the AaveDAO.
DeFi Community Yet To Embrace World Liberty
World Liberty experienced a rough start selling only 4% of its native token on its first day. The project has stirred concerns after it disclosed that the Trump family will keep 75% of the total revenue generated by the platform.
World Liberty has also in the past slashed its fundraising target from $300 million to $30 million, indicating reduced interest from DeFi users.
With Ethena outlining possible benefits of having sUSDe on World Liberty, it’s to be seen whether the World Liberty community will consider the benefits and pass the proposal.
