This is Why Ethena and WLFI Partnered for Aave Instance
Ethena Labs today announced a partnership with Donald Trump’s token project World Liberty Financial (WLFI). Together, they will list Ethena’s sUSDe token as a collateral asset for WLFI ghost v3 instance.
Both companies will benefit from the collaboration, as Ethena Labs will have new use cases for its sUSDe token, while WLFI will have collateral assets that have passed Aave Core’s risk analysis.
Ethena and WLFI collaborate on Aave
according to announcementthis partnership is tied to new governance proposal on WLFI. If the proposal passes, sUSDe is the pledged version of sUSDe Ethena Labs’ USDe stablecoinwill become the core mortgage asset on WLFI’s Aave instance.
“If passed, the proposal will enable WLFI users to benefit from sUSDe rewards and WLF token rewards. This integration will increase Stablecoin Liquidity and utilization of the protocol, just like sUSDe’s integration with Aave core instances,” the company wrote on X (formerly Twitter).
Although WLFI suffered huge setbacks in its operations, Pre-sale startup failedDonald Trump ushered in the election victory new investment capital.
last week, WLFI invests US$1 million Enter Ive’s AAVE Governance/Utility Tokenincreasing its value by approximately 30%. The agreement has Plan to launch an Aave instance Since October.
Meanwhile, Ethena Labs launched USDtb, a new stablecoin earlier this week. The new stablecoin is backed by BlackRock’s tokenization fund BUIDL and the hype surrounding it different market rallies For ENA.
However, this “strategic partnership” could bring significant profits to both companies. WLFI noted in its governance proposal that sUSDe has passed Aave Core’s risk analysis and therefore may pass similar scrutiny for new instances.
If the WLFI proposal is passed, Ethena will also co-incentivize sUSDe deposits on Aave instances.
By placing sUSDe on its Aave instance, WLFI will benefit from Ethena’s TVL and user base. Ethena will gain new use cases for the sUSDe token, increasing the stablecoin’s liquidity and overall utilization.
With this simple partnership, Ethena has found a way to boost this revenue-generating token while it can focus on building and promoting its other products.
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