World Liberty Financial, a cryptocurrency project backed by President-elect Donald Trump, announced a strategic partnership with decentralized finance protocol Ethena Labs (CRYPTO: ENA) on Wednesday
What happened: Ethena Labs stated on X that a proposal has been submitted to explore Ethena Staked USDe (CRYPTO: sUSDe), a reward-bearing stablecoin, as a collateral asset on the upcoming protocol.
Ethena has entered into a strategic partnership with @worldlibertyfi
A governance proposal has been submitted to add sUSDe to WLFI's upcoming Aave instance as a core collateral asset pic.twitter.com/jgjd8QGWDS
— Ethena Labs (@ethena_labs) December 18, 2024
"Should it pass, this proposal will enable World Liberty Financial users to benefit from sUSDe rewards and also WLF token rewards," Ethena Labs said.
Ethena issues the so-called synthetic stablecoin USDe, which, unlike other dollar-pegged stablecoins like Tether (CRYPTO: USDT) and USD Coin (CRYPTO: USDC) doesn't rely on traditional finance backing.
After the announcement, World Liberty Financial bagged $250,000 worth of ENA tokens, Ethena Labs' native cryptocurrency. Since Nov. 30, it has bought 741,681 ENA tokens, worth $823,265 at current market prices.
After announcing a partnership with @ethena_labs, Donald Trump's World Liberty Financial (@worldlibertyfi) spent 250K $USDC to buy another 231,726 $ENA 20 minutes ago!
Since November 30, World Liberty Financial has spent $45M to buy 6 crypto assets, including:
• 8,105 $ETH... pic.twitter.com/PrFmUH4KLH— Spot On Chain (@spotonchain) December 18, 2024
Why It Matters: World Liberty Financial was launched as a decentralized money market in September that will allow users to borrow, lend, and earn interest on cryptocurrencies.
The project was passionately promoted by Trump and his family, and a firm associated with the President-elect, DT Marks DEFI, LLC, would receive 75% of the protocol revenue.
Recently, the protocol roped in Tron (CRYPTO: TRX) founder Justin Sun as its advisor, following a $30 million investment into the protocol by the cryptocurrency mogul.
Price Action: At the time of writing, ENA was exchanging hands at $1.11, up 1.86% in the last 24 hours, according to data from Benzinga Pro, one of the few tokens to trade in the green on a day the broader market slumped.
