As a seasoned researcher with over two decades of experience in the financial sector, I find this partnership between World Liberty Financial (WLFI) and Ethena Labs particularly intriguing. The integration of Ethena’s yield-bearing token, sUSDe, into the WLFI ecosystem could potentially revolutionize the way decentralized finance operates.
In an update on X, World Liberty Financial (WLFI) shared news about a long-term partnership with Ethena Labs.
The process of integration will kick off by incorporating Ethena’s earning token, sUSDe, into the WLFI system first. This makes Ethena the inaugural token that can be utilized as collateral within the WLFI environment, operating on the Aave infrastructure as its backbone. The Total Value Locked (TVL) and user base of Ethena are expected to enhance the functionality of the Aave setup.
The collaboration initially plans to explore the possibility of employing sUSDe as security. This move could provide Aave with immediate access to Ethena’s Total Value Locked (TVL), benefiting numerous users. WLFI’s leadership is set to make a decision this week regarding whether they will approve the use of sUSDe as collateral.
If the WLFI Aave instance doesn’t get approval from governance, or if sUSDe isn’t accepted as a collateral option, WLFI and Ethena will still seek ways to work together, according to their statement.
In mid-November last year, Aave markets welcomed Ethena’s token, sUSDe. To my surprise, within a mere four weeks, its assets surged to approximately $1.2 billion! If the integration proves successful, this could potentially boost stablecoin deposits on the WLFI platform, as many crypto enthusiasts prefer using sUSDe as collateral to borrow popular stablecoins like USDC and USDT.
This alliance stems from a sequence of occurrences linked to WLFI. More recently, the entity designated Tron’s founder, Justin Sun, as an advisor, and procured a $30 million investment from HTX – a cryptocurrency exchange associated with Sun.
Moreover, WLFI purchased ENA tokens amounting to $600,000 from Ethena. While this transaction isn’t a direct outcome of their collaboration, it underscores WLFI’s confidence in the prosperity of the Ethena platform.
In September 2024, World Liberty Financial was established, and its initial public token offering commenced in October. Despite previous criticism of cryptocurrencies by Trump, his association with WLFI suggests a growing inclination towards endorsing the crypto market. This could potentially lead to a relaxation of regulations on digital assets.
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2024-12-18 23:33