Today, Ethena Labs announced that it has partnered with World Liberty Financial (WLFI), Donald Trump's Token project. The two will use Ethena's sUSDe Token as collateral on WLFI's Aave v3 version.
This collaboration benefits both companies, as Ethena Labs gains a new use case for its sUSDe Token, while WLFI secures collateral that has passed Aave Core's risk analysis.
Ethena and WLFI Collaborate on Aave
According to the announcement, this partnership is linked to a new governance proposal on WLFI. If approved, sUSDe, the staking version of the stablecoin USDe from Ethena Labs, will become a core collateral asset on WLFI's Aave instance.
"If passed, this proposal will allow WLFI users to benefit from sUSDe rewards as well as WLF Token rewards. This integration will increase stablecoin liquidity and utilization on the protocol, as sUSDe has done on Aave Core," the company wrote on X (formerly Twitter).
Although WLFI faced significant challenges from its failed presale launch, Donald Trump's electoral victory has helped bring new investment capital.
Last week, WLFI invested $1 million in Aave's governance/utility Token AAVE, increasing its value by around 30%. The protocol is planning to launch its Aave version starting in October.
Meanwhile, Ethena Labs launched a new stablecoin, USDtb, earlier this week. This new stablecoin is backed by BlackRock's BUIDL crypto fund, and the hype around it has created another price surge in the market for ENA.
However, this "strategic partnership" could bring massive profits for both companies. In the governance proposal, WLFI noted that sUSDe has passed Aave core's risk analysis and is therefore likely to pass similar checks on the new version.
Ethena will also co-sponsor the deployment of sUSDe on the Aave version if WLFI's proposal is approved.
By bringing sUSDe to its Aave version, WLFI will benefit from Ethena's TVL and user base. Ethena will gain a new use case for its sUSDe Token, increasing stablecoin liquidity and overall utilization.
Through this simple collaboration, Ethena has found a way to further monetize its Token while focusing on building and promoting its other products.
