Ethena Labs Partners with Trump-Assosiated Crypto Project

Ethena Labs has teamed up with World Liberty Financial (WLFI), a cryptocurrency project with ties to President-elect Donald Trump, to drive liquidity for stablecoins and enhance rewards across WLFI's DeFi offerings.

This collaboration includes a proposal to incorporate Ethena’s sUSDe stablecoin into WLFI’s upcoming Aave-powered lending platform, potentially allowing users to earn rewards in both sUSDe and WLFI tokens. This move aims to boost liquidity and utilization within WLFI’s ecosystem.

WLFI has also been shifting its focus towards Ethereum, converting nearly $50 million worth of stablecoins into ETH in recent weeks. This strategic allocation, which includes recent purchases via CoW Swap, positions ETH as the project’s largest asset. Experts suggest that this move reflects WLFI’s broader strategy of holding ETH as a reserve rather than relying solely on stablecoins.

The WLFI token sale, which started in October, has raised $55 million so far, but is still short of its $300 million goal. The raised funds are being reinvested into DeFi protocols and crypto assets, further supporting WLFI’s goal to become a leading player in decentralized finance.

Alongside this, Ethena Labs has unveiled USDtb, a new stablecoin backed by BlackRock’s BUIDL fund, which is primarily invested in U.S. government debt. However, despite these developments, Ethena’s native token ENA has seen some downward movement in recent trading, dropping by 4.5% in the last 24 hours.