- Trump’s DeFi project World Liberty Financial wants to work with Aave
- The project has announced an intention to become an Aave instance
- World Liberty Financial intends to offer 20% of the fees generated to the AaveDAO
Donald Trump’s DeFi project World Liberty Financial (WLF) has released a proposal revealing its intentions to work with Aave, a leading Ethereum DeFi protocol. According to the proposal, World Liberty Financial wants to operate as an instance on Aave meaning that it will be powered by the Aave engine and managed by the Aave community through AaveDAO. The Aave community will benefit by pocketing 20% of all transaction fees generated on the protocol, a proposition that may contribute to the Aave community accepting World Liberty Financial to become an Aave instance.
WLF To Employ Aave’s Reserve Factor System
The Aave instance will focus on “providing stablecoin liquidity for ETH and WBTC [and] growing the Aave protocol user base.” According to the proposal, WLF users can deposit supported crypto and use the funds as collateral on loans. It added that the project will employ Aave’s “reserve factor system” in its operation.
The move will also see AaveDAO receive roughly 7% of the project’s native token (WLF) supply. The tokens will help the Aave community to participate in governing and providing liquidity on World Liberty Financial.
The Aave Community Supports WLF’s Proposal
People commenting on the proposal indicated their support with some noting that the “revenue share and token sharing seems fair and signals a good relationship is important for WLF.” The proposal is currently in the “Temp Check” stage and must go through roughly four other stages before World Liberty Financial officially becomes an Aave V3 instance.
The proposal comes a month after Trump launched his fourth NFT collection with special perks for bulk collectors. It also comes when Trump and Kamala Harris are in a race to gain the attention of the crypto community before November’s U.S. presidential election.
With the Aave community open to having World Liberty Financial as an Aave instance, it’s to be seen whether the WLF team will push through with the proposal before the November elections.
