The crypto project World Liberty Financial (WLFI) supported by US President-elect Trump has announced a partnership with the stablecoin protocol Ethena Labs, which will utilize Ethena's yield-bearing stablecoin USDe as collateral on the Ethereum lending protocol Aave, further expanding the DeFi market.
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ToggleFirst Step Plan: Using USDe as Collateral for WLFI
According to WLFI's Twitter post, WLFI will attempt to introduce USDe as collateral on the Ethereum lending protocol AAVE. This plan requires approval through a WLFI community vote before implementation.
If the plan is approved, the introduction of USDe is expected to increase WLFI's total value locked (TVL) and also boost the deposit volume of stablecoins (USDC, USDT). According to WLFI and Ethena, USDe has performed remarkably well on the Aave platform, accumulating around $1.2 billion in TVL within just one month after being listed on Aave in mid-November 2023, indicating a certain degree of market appeal and application value for USDe.
If the Plan is Not Approved, There Are Still Other Integration Opportunities
The WLFI community is expected to vote on whether to introduce USDe as collateral this week. If the plan is not approved, WLFI and Ethena still intend to continue their collaboration and explore other ways to facilitate different cooperation opportunities.
Additionally, WLFI purchased $500,000 worth of Ethena's ENA tokens on 12/17, which, although not directly related to this collaboration, demonstrates WLFI's support and confidence in Ethena's future development. Since WLFI announced its partnership with Ethena, the ENA token has also seen a 12% price increase.
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