World Liberty Financial, a cryptocurrency project backed by President-elect Donald Trump, announced a strategic partnership with decentralized finance protocol Ethena Labs ENA/USD on Wednesday
What happened: Ethena Labs stated on X that a proposal has been submitted to explore Ethena Staked USDe (CRYPTO: sUSDe), a reward-bearing stablecoin, as a collateral asset on the upcoming protocol.
"Should it pass, this proposal will enable World Liberty Financial users to benefit from sUSDe rewards and also WLF token rewards," Ethena Labs said.
Ethena issues the so-called synthetic stablecoin USDe, which, unlike other dollar-pegged stablecoins like Tether USDT/USD and USD Coin USDC/USD doesn't rely on traditional finance backing.
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After the announcement, World Liberty Financial bagged $250,000 worth of ENA tokens, Ethena Labs' native cryptocurrency. Since Nov. 30, it has bought 741,681 ENA tokens, worth $823,265 at current market prices.
Why It Matters: World Liberty Financial was launched as a decentralized money market in September that will allow users to borrow, lend, and earn interest on cryptocurrencies.
The project was passionately promoted by Trump and his family, and a firm associated with the President-elect, DT Marks DEFI, LLC, would receive 75% of the protocol revenue.
Recently, the protocol roped in Tron TRX/USD founder Justin Sun as its advisor, following a $30 million investment into the protocol by the cryptocurrency mogul.
Price Action: At the time of writing, ENA was exchanging hands at $1.11, up 1.86% in the last 24 hours, according to data from Benzinga Pro, one of the few tokens to trade in the green on a day the broader market slumped.
Image via Flickr
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