Ethena Labs proposes collab with Trump-backed WLFI

Ethena Labs aims to integrate its staked synthetic dollar sUSDe with World Liberty Financial, a DeFi protocol endorsed by President-elect Donald Trump.

The decentralized finance protocol has submitted a proposal to add sUSDe to World Liberty Financial’s upcoming Aave instance. If approved by the community, the staked stable token will become a key collateral asset for users.

Ethena sUSDe is a staked version of the coin (USDE), a synthetic dollar backed by leveraged positions backed by cryptocurrencies such as Bitcoin (BTC) and staked Ethereum (stETH).

The mechanics of the token involve simultaneously longing and shorting other assets and maintaining the dollar peg through the net effect. According to DefiLlama’s total value locked data, users have deposited approximately $6 billion in USDe.

Ethena Labs stated that integrating sUSDe into World Liberty Financial (WLFI) will provide several benefits to users, including the accrual of sUSDe rewards to increase local WLFI earnings. The Trump-endorsed WLFI protocol allows DeFi users to borrow and lend assets on-chain while earning returns from participation.

According to Ethena Labs, the inclusion of sUSDe in WLFI through Aave’s Core instance will increase stablecoin liquidity and user engagement.

sUSDe has created a powerful multiplier effect on rates on Aave markets: currently $1 billion of sUSDe added to Aave Core has almost doubled the supply rates of over $5 billion USDC, USDT and USDS liquidity… With sUSDe, the platform offers higher on-chain rewards A broader range of users seeking rates diversifies the user base and also solidifies World Liberty Financial’s position as a leading destination for stablecoin loans, while growing key metrics such as TVL borrowing

Ethena Labs offer

The proposal to connect SUSDe and WLFI is governed by the Aave protocol that enables loan agreements at World Liberty Financial. Aave board members voted in favor of distributing Aave v3 on WLFI in a vote held on December 13.

Ethena Labs has also partnered with BlackRock and Securitize to launch USDtb, a dollar stablecoin powered by tokenized money market BUIDL, which invests in US government-issued debt such as Treasury Bills.

USDtb functions like a traditional stablecoin like USDC or USDT and uses cash and cash equivalent reserve assets to back each token

Blackrock’s BUIDL represents the vast majority of USDtb support and currently has the highest BUIDL allocation of any stablecoin on the market.

— Ethena Laboratories (@ethena_labs) December 16, 2024