Athena Labs aims to integrate its synthetic dollar stack, sUSDe, with World Liberty Financial, a DeFi protocol backed by President-elect Donald Trump.
The decentralized finance protocol is on it has been submitted proposal to add sUSDe to World Liberty Financial's upcoming Aave example. If approved by the community, the stablecoin token will become the primary collateral for users.
Athena sUSDe is the staked version of the (USD) coin, a synthetic dollar backed by leveraged positions backed by cryptocurrencies like Bitcoin (BTC) and implemented Ethereum (steETH).
The mechanics of the token include longing and shorting other assets at the same time, maintaining its dollar peg through the net effect. Users have invested nearly $6 billion in USDe, according to total value locked data from DefiLlama.
Athena Labs said the integration of sUSDe into World Liberty Financial (WLFI) will bring a number of benefits to consumers, including receiving sUSDe rewards to enhance WLFI's native benefits. The Trump-backed WLFI protocol enables DeFi users to borrow and borrow assets on-chain while earning a return for participation.
According to Athena Labs, introducing sUSDe to WLFI through Aave's Core instance would increase stablecoin liquidity and user engagement.
sUSDe has had an effective multiplier effect on rates across Aave markets: currently, $1B of sUSDe onboarded to Aave Core has almost doubled supply levels on over $5 billion of USDC, USDT, and USDS liquidity… By sUSDe, the platform can capture a wider range of users seeking higher reward levels on chain, diversifying its user base but also consolidating its position World Liberty Financial as the main destination for stable loans and loans while growing basic criteria like TVL.
Recommended by Athena Labs
The proposal to connect sUSDe and WLFI depends on the Aave protocol to implement loan contracts on World Liberty Financial. Aave management members voted to put Aave v3 on WLFI through a vote decided on December 13.
Athena Labs has also partnered with BlackRock and Securitize to launch USDtb, a dollar-denominated stablecoin backed primarily by tokenized money market BUIDL, which invests in debt issued by the US government such as Treasury Bills.
