Ethena Labs Aims to Integrate Its Staked Synthetic Dollar, sUSDe, With World Liberty Financial, a DeFi Protocol Endorsed by President-elect Donald Trump

The decentralized finance protocol has submitted a proposal to add sUSDe to World Liberty Financial's upcoming Aave instance.

DeFi protocol World Liberty Financial, endorsed by President-elect Donald Trump, is set to integrate Ethena's staked synthetic dollar (sUSDe) into its upcoming Aave instance, according to a proposal submitted by the protocol.

Pending community approval, the staked stable token will be added as a core collateral asset for users on the Aave World Liberty Financial (WLFI) instance.

Ethena sUSDe is the staked variant of its synthetic dollar stablecoin (USDE), which is backed by leveraged positions in other cryptocurrencies such as Bitcoin (BTC) and staked Ether (stETH). The token's mechanics involve simultaneously longing and shorting other assets, maintaining its dollar peg through the net effect.

According to total value locked data from DefiLlama, the token has seen nearly $6 billion deposited into USDe.

The integration of sUSDe into WLFI will provide several benefits for users, including accruing sUSDe rewards to enhance native WLFI gains, according to Ethena Labs. The Trump-endorsed WLFI protocol enables DeFi users to borrow and lend assets on-chain while earning yield for participation.

Introducing sUSDe into WLFI via Aave’s Core instance will boost stablecoin liquidity and user engagement, according to Ethena Labs.

“sUSDe has had an effective multiplier effect on rates across Aave markets: currently, $1B of sUSDe onboarded to Aave Core have almost doubled the supply rates on over $5 billion of USDC, USDT, and USDS liquidity… With sUSDe, the platform can capture a broader range of users seeking higher on-chain reward rates, diversifying its user base but also solidifying World Liberty Financial’s position as a premier destination for stablecoin lending and borrowing while growing core metrics like TVL.”

The proposal to integrate sUSDe and WLFI is contingent on the Aave protocol activating its lending contracts on World Liberty Financial. Members of Aave governance voted in favor of deploying Aave v3 on WLFI in a vote that concluded on Dec. 13.

Ethena Labs also recently partnered with BlackRock and Securitize to launch USDtb, a dollar stablecoin that is primarily backed by the tokenized money market BUIDL, which invests in U.S. government-issued debt such as Treasury Bills.

“USDtb functions like a traditional stablecoin such as USDC or USDT, utilizing cash and cash-equivalent reserve assets to back each token. Blackrock's BUI