Trump-backed World Liberty Financial adopts sUSDe stablecoin in DeFi expansion

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Cryptobriefing2024/12/19 01:11

By:Cryptobriefing

Key Takeaways

World Liberty Financial is integrating the sUSDe stablecoin into its DeFi ecosystem with Ethena.
WLFI's portfolio expansion includes $500,000 investment in Ethena and $250,000 in Ondo.

Donald Trump-backed crypto project World Liberty Financial (WLFI) is partnering with Ethena to integrate the sUSDe stablecoin as a core collateral asset in WLFI’s upcoming Aave v3 instance.

The proposal under review would enable sUSDe deposits with dual rewards in sUSDe and WLFI’s native WLF tokens.

These rewards aim to attract users to the platform while enhancing liquidity.

In the unlikely event that the WLFI Aave instance is not approved by governance, or sUSDe is not greenlit as a collateral asset, WLFI and Ethena stated they “would continue to explore opportunities to collaborate with the full intention of finding points of integration,” as reported by The Block.

Building on its expansion strategy, WLFI has significantly increased its digital asset portfolio.

The institution recently invested $500,000 in Ethena and $250,000 in Ondo, alongside substantial holdings in ETH, AAVE, LINK, and cbBTC.

WLFI’s portfolio now totals $83 million, with ETH representing the largest share at $57 million, according to data from Arkham Intelligence.

The sUSDe stablecoin, central to the proposal, has demonstrated strong market traction since its integration into Aave’s Core and Lido instances in November.

Within just one month, sUSDe accumulated $1.2 billion in supplied assets, boosting supply rates on over $5 billion of USDC, USDT, and USDS liquidity.

This initiative, combined with WLFI’s WLF token rewards, seeks to create a compelling value proposition for users and position the Aave v3 instance as a competitive DeFi destination.

WLFI’s move into DeFi coincides with former President Donald Trump’s election and his signals of reducing regulatory pressure on digital assets.

In a bid to strengthen its presence in the sector, WLFI recently appointed Tron founder Justin Sun as an advisor. This followed a $30 million investment by HTX, a crypto exchange linked to Sun.

Meanwhile, Ethena continues to innovate within its ecosystem, having recently launched a BlackRock-backed stablecoin to enhance its offerings.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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The crypto market has dipped in response to President Trump’s plan to enact steep tariffs on imported goods from Canada, Mexico, and China beginning on Tuesday.Canada and Mexico have ordered retaliatory tariffs in response, while China promised “corresponding countermeasures” and said it would file a lawsuit with the WTO.Memecoins were particularly hard-hit by the downturn, with many top coins seeing double-digit percentage drops. Trump’s memecoin has fallen nearly 30% over the past week.

The Block•2025/02/02 17:11