Ethena Labs partners with Trump’s World Liberty Financial

Ethena, a decentralized finance (DeFi) protocol, has partnered with World Liberty Financial, a company backed by Donald Trump to combine Ethena’s “synthetic dollar” token (USDe) with World Liberty’s financial tools. This announcement of this partnership was made on Dec. 18. Users can deposit Ethena’s sUSDe token (a staked version of USDe) and earn rewards in both sUSDe and World Liberty’s WLF token.


Details from the Announcement

Ethena explained the partnership via a post on X (formerly Twitter). If the plan is approved, users of World Liberty Financial will benefit from two reward streams (sUSDe and WLF tokens). The partnership is expected to increase the liquidity (available funds) and use of stablecoins on the platform, just as Ethena’s token did on Aave’s platform.

It read, “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.”


Proposal to Onboard sUSDe

Ethena submitted an official request to the World Liberty Financial community on December 18. This request asks the community to approve the use of sUSDe as collateral (security) on their platform. Ethena explained that the token has already passed risk tests on two other platforms, Aave Core and Lido.

If approved, Ethena will incentivize users to supply sUSDe to the system by offering extra rewards through its points program.

The partnership comes as World Liberty Financial is trying to establish itself in the cryptocurrency market. The company had a rough start when its token (WLFI) launched on October 16. Only a small amount of WLFI tokens were sold initially, leaving a large number unsold.


What You Should Know

On November 26, cryptocurrency entrepreneur Justin Sun became the largest tokenholder of World Liberty Financial by purchasing $30 million worth of WLFI tokens.

Shortly after Sun’s investment, the company used the funds to purchase various cryptocurrencies, including Ether, AAVE, and ENA, to strengthen its portfolio and improve its market position.