The U.S. President-elect Donald Trump's supported crypto project World Liberty Financial (WLFI) has announced a partnership with stablecoin protocol Ethena Labs to introduce Ethena's yield-bearing stablecoin USDe into the Ethereum lending protocol Aave as collateral, further expanding the DeFi market.
First step plan, using 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 needs to be approved through a community vote by WLFI before it can be implemented.
Assuming the plan is approved, the introduction of USDe is expected to boost the total value locked (TVL) of WLFI, and also increase the deposits 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 value within just one month since Aave launched USDe in mid-November 2023. This indicates that USDe has a certain level of market appeal and application value.
If the plan is not approved, there are still other integration opportunities.
WLFI's 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 cooperating and will seek other ways to facilitate different collaboration opportunities.
Additionally, WLFI purchased $500,000 worth of Ethena tokens ENA on 12/17. Although it has no direct relation to this collaboration, this action demonstrates WLFI's support and confidence in Ethena's future development. Since WLFI announced its collaboration with Ethena, the Ethena token ENA has also surged by 12%.
(Trump's crypto project WLFI also invested $250,000 to buy $ONDO, spending nearly $45 million in December on coin acquisitions)
This article 'Trump's crypto project WLFI teams up with Ethena, first introducing USDe stablecoin into Aave as collateral' first appeared in Chain News ABMedia.
