Ethena Labs Partners with Trump's World Liberty Financial

Crypto News DeFi

Dual Rewards, New Horizons: Ethena Labs Partners with World Liberty Financial

Written by Aaron S.,

Editor-In-Chief

Last Updated: December 19, 2024

Key Takeaways

Ethena Labs partners with World Liberty Financial to integrate sUSDe for dual token rewards;
The collaboration aims to boost liquidity and adoption with incentives and synthetic dollar deposits;
Despite this partnership, World Liberty Financial has struggled with token sales since its launch.

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Dual Rewards, New Horizons: Ethena Labs Partners with World Liberty Financial

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Ethena Labs, a decentralized finance (DeFi) platform, announced on December 18 that it has partnered with World Liberty Financial, a company supported by President-elect Donald Trump.

The collaboration aims to increase liquidity and provide greater utility for stablecoins in the market.

In a proposal shared with the World Liberty Financial community, Ethena Labs proposed making Ethena’s synthetic dollar, sUSDe, the first collateral asset for World Liberty Financial’s platform.

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This follows successful risk evaluations for sUSDe on Aave AAVE $152.62 Core and Lido. If the proposal is approved, Ethena plans to offer incentives through its points program to encourage users to supply sUSDe and benefit from the dual rewards system.

These rewards come from Ethena’s staked version, sUSDe, as well as World Liberty Financial’s native token, WLF.

Ethena Labs posted a statement on X:

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.

However, the partnership arrives during World Liberty Financial's hard times. Since its token launch on October 16, the company has only sold 848.63 million WLF tokens, equivalent to $12.7 million based on presale pricing.

Fortunately, a large investment from Justin Sun, Tron's TRX $0.2820 CEO, provided a financial boost when he purchased $30 million worth of WLF tokens in late November. What's the intention behind Sun's investment? Read the full story.