December 18, 2024
Athena Labs announced today that it is partnering with World Liberty Financial (WLFI), Donald Trump’s token project. Together, they will list Athena’s sUSDe token as a collateral asset on WLFI’s Aave v3.
Both companies will benefit from this partnership, with Athena Labs getting a new use case for its sUSDe token, and WLFI getting a collateral asset that has already passed Aave Core’s risk analysis.
Ethena and WLFI Partner on Aave
According to the announcement, the partnership is tied to a new governance proposal on WLFI. If the proposal passes, sUSDe, the staked version of Athena Labs’ USDe stablecoin, will become the underlying collateral asset on WLFI’s Aave version.
“If passed, this proposal will enable WLFI users to benefit from sUSDe rewards as well as WLF token rewards,” the company wrote on X (formerly Twitter). “This integration will increase stablecoin liquidity and usage rates on the protocol, as did the sUSDe integration on Aave Core.”
Although WLFI suffered dramatic setbacks in a failed pre-sale launch, Donald Trump's election victory brought new investment capital.
Last week, WLFI invested $1 million in Aave’s governance/utility token AAVE, increasing its value by about 30%. The protocol has been planning to launch an Aave version since October.
Meanwhile, Athena Labs launched a new stablecoin, USDtb, earlier this week. The new stablecoin is backed by BlackRock’s BUIDL token fund, and the buzz around it has generated a different kind of market rally for ENA.
However, this “strategic partnership” could bring healthy profits to both companies. In its governance proposal, WLFI noted that sUSDe has already passed the risk analysis on Aave core and will likely pass a similar audit in the new case.
By putting sUSDe on Aave, WLFI will benefit from Ethena’s TVL and user base. Ethena will gain a new use case for this sUSDe token, increasing stablecoin liquidity and overall usage rates.
Through this simple partnership, Ethena has found a way to promote this yield-bearing token while it can focus on building and promoting its other offerings.
