Will the collaboration with Ethena Labs support the future growth of the World Liberty Finance project after the previous lackluster token sale?
The DeFi project WLFI, which former President Donald Trump has publicly expressed support for, has just announced a partnership with Ethena Labs through the integration of the sUSDe token into its ecosystem.
According to information from WLFI, sUSDe is being considered as the first collateral asset on the platform and will leverage Aave's infrastructure. This integration is expected to bring significant benefits, helping WLFI attract more Total Value Locked (TVL) from Ethena’s ecosystem and expand its user base.
However, the decision to integrate sUSDe will depend on the governance vote from the WLFI community, which is expected to take place this week. If the proposal is not approved, both parties have confirmed that they will continue to explore other partnership opportunities to build a long-term relationship.
The WLFI project has gained significant attention since Donald Trump’s re-election in November. Another strategic move by the project is the appointment of Justin Sun, founder of Tron, as an advisor. WLFI has also received a $30 million investment from HTX, a cryptocurrency exchange linked to Sun. These moves demonstrate WLFI’s efforts to build a strong partner network, aimed at driving growth and solidifying its position in the DeFi market.
Since its integration into Aave in mid-November, the sUSDe token has reached a total supply value of $1.2 billion. Integrating sUSDe into the WLFI ecosystem not only boosts the amount of stablecoins deposited on the platform but also maximizes the potential of the token as collateral to borrow popular stablecoins such as USDC and USDT.
In addition to the partnership, WLFI has invested in Ethena by purchasing 600,000 ENA tokens, demonstrating confidence in the long-term growth of its partner. According to Zak Folkman, co-founder of WLFI, this is a crucial step in democratizing financial tools, enhancing the user experience, and expanding global accessibility.
Launched in September and starting its public token sale in October, WLFI quickly became a focal point in the DeFi space. Notably, former President Donald Trump’s public support for the project marked a turning point in his views on the digital asset industry. He even committed to reducing regulations on the crypto sector to foster growth.
However, despite strong backing, WLFI’s token sale did not meet expectations. After more than two weeks, the project raised only around $14.5 million, or 4.3% of the target token sale amount. The primary reasons for this underperformance include:
Limited investor pool: Only accredited investors in the U.S. or non-residents were allowed to participate, significantly reducing the reach.
Overvaluation: WLFI’s valuation was seen as unrealistic relative to its actual potential, especially in a highly competitive and saturated DeFi market.
WLFI's token sale was not very successful
Despite backing from the Trump family, WLFI still lacks a competitive edge in the DeFi market. To make a breakthrough, the project needs to address issues related to its valuation and expand its investor base. Additionally, it must develop unique features to attract new users and differentiate itself in the crowded DeFi space.
