Ethena Labs proposed integrating its synthetic stablecoin, sUSDe, into World Liberty Financial ($WLFI) on Dec. 18.
The proposal stated that this partnership would boost capital efficiency and liquidity in $WLFI’s new Aave instance. The protocol is a credit market backed by President-elect Donald Trump’s family.
The partnership comes as part of Ethena’s broader mission to expand the utility of sUSDe, which has become the third-largest stablecoin with a $6.1 billion market cap, according to Artemis data.
Integrations across major DeFi protocols, including Aave, Curve, and Pendle, fueled the rise of the synthetic stablecoin. Additionally, sUSDe offers its holders a significant annual percentage yield (APY) of 27%.
According to the proposal, sUSDe’s role in Aave’s existing markets has already proven its ability to amplify market conditions. Within a month of its onboarding to Aave Core and Lido instances, sUSDe achieved $1.2 billion in supplied assets, nearly doubling supply rates on over $5 billion of stablecoins like USD Coin (USDC) and Tether USD (USDT).
$WLFI gaining traction
Should the proposal pass governance and the $WLFI Aave instance go live, introducing sUSDe will enable $WLFI to enhance users’ rewards due to the stablecoin’s high APY, grow its total value locked, and boost its revenue generation.
Additionally, Ethena will co-incentivize sUSDe deposits through its points program, offering additional rewards alongside $WLFI’s native WLF tokens.
Aave’s risk service providers will oversee the deployment to ensure market stability and optimize liquidity.
cointelegraph.com
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