World Liberty Financial, a cryptocurrency project backed by President-elect Donald Trump, announced a strategic partnership with decentralized finance protocol Ethena Labs (CRYPTO: ENA) 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 (CRYPTO: USDT) and USD Coin (CRYPTO: USDC) doesn't rely on traditional finance backing.

See Also: MicroStrategy’s Aggressive Bitcoin Strategy Raises Eyebrows In Crypto Community

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. 

Image via Flickr

Read Next: 

• Bitcoin Is No Manhattan Real Estate, Peter Schiff Challenges MicroStrategy’s Michael Saylor: ‘BTC Doesn’t Generate Any Income’