The World Liberty Financial (WLFI) project, supported by the incoming U.S. President Trump, announced a partnership with the stablecoin protocol Ethena Labs to utilize Ethena's yield-bearing stablecoin USDe as collateral in the Ethereum lending protocol Aave, further expanding the DeFi market.
The first step plan is to use USDe as collateral for WLFI.
According to WLFI's Twitter, WLFI will attempt to introduce USDe into the Ethereum lending protocol AAVE as an asset that users can use as collateral. This plan will only be implemented after approval through a community vote by WLFI.
If the plan is approved, the introduction of USDe is expected to enhance the total value locked (TVL) of WLFI, and will also increase the deposit amounts of stablecoins (USDC, USDT). According to WLFI and Ethena, USDe has performed exceptionally well on the Aave platform, accumulating approximately $1.2 billion in locked assets within just a month since Aave launched USDe in mid-November 2023. This indicates that USDe possesses a certain level of market appeal and application value.
If the plan is not approved, there are still other integration opportunities.
The WLFI community is expected to vote this week on whether to introduce USDe as collateral. If the plan is not approved, WLFI and Ethena still intend to continue collaboration and will seek other ways to facilitate different cooperation opportunities.
Additionally, WLFI purchased Ethena tokens ENA worth $500,000 on 12/17. Although this is not directly related to the current collaboration, it demonstrates WLFI's support and confidence in Ethena's future development. Since WLFI announced its partnership with Ethena, the ENA token has also risen by 12%.
(Trump's crypto project WLFI has also invested $250,000 in $ONDO, spending nearly $45 million on coin purchases in December.)
This article about Trump’s crypto project WLFI partnering with Ethena to introduce the USDe stablecoin into Aave as collateral first appeared in Chain News ABMedia.
