Ethena Labs suggested by integrating its synthetic stablecoinsUSDe, on December 18 in World Liberty Financial (WLFI).
The proposal stated that this partnership would increase capital efficiency and liquidity in WLFI’s new Aave instance. The protocol is a credit market backed by the family of newly elected President Donald Trump.
The partnership is part of Ethena’s broader mission to expand the usefulness of sUSDe, which has become the third largest stablecoin with a market cap of $6.1 billion, according to Artemis. facts.
Integrations between major DeFi protocols including Aave, Curve, and Pendle have fueled the rise of the synthetic stablecoin. Furthermore, sUSDe offers its holders a significant annual yield (APY) of 27%.
According to the proposal, sUSDe’s role in Aave’s existing markets has already proven its ability to strengthen market conditions. Within a month of launching in Aave Core and Lido instances, sUSDe achieved $1.2 billion in delivered assets, nearly doubling its supply of over $5 billion in stablecoins such as USD Coin (USDC) and Tether USD (USDT).
WLFI is gaining ground
Should the proposal pass the board and the WLFI Aave instance go live, the introduction of sUSDe will allow WLFI to improve user rewards thanks to the stablecoin’s high APY, increase its overall value and increase revenue generation to enlarge.
Additionally, Ethena will co-incentivize SUDe deposits through its points program, offering additional rewards beyond WLFI’s own WLF tokens.
Aave’s risk services providers will oversee efforts to ensure market stability and optimize liquidity.
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Gino Matos
Gino Matos is a law graduate and a seasoned journalist with six years of experience in the crypto industry. His expertise focuses primarily on the Brazilian blockchain ecosystem and developments in decentralized finance (DeFi).
