Trump’s World Liberty Financial Proposes Joining Aave DeFi

Donald Trump’s cryptocurrency initiative, World Liberty Financial (WLF), has filed a proposal on the Aave governance forum. The former president and his associates intend to leverage the platform for their cryptocurrency offering.

The proposal seeks to anchor WLF’s services within Aave, with the protocol supplying the essential infrastructure needed. In exchange, AaveDAO would receive 20% of all protocol fees generated by WLF, along with 7% of the WLFI supply, which is the governance token for the project.

WLFI Tokens to be Earned as Incentives

Moreover, the new proposal indicates that participants in World Liberty liquidity pools will earn WLFI tokens as rewards. However, there are still concerns regarding how AaveDAO will handle the custody and distribution of the WLFI tokens, as the Trump initiative classified them as non-transferable.

Initially, WLF aims to receive deposits in Ethereum (ETH), Wrapped Bitcoin (WBTC), and the two major stablecoins, USDC and USDT, enabling users to utilize these assets as collateral for loans. Revenue sharing will occur through a trustless smart contract.

This venture reportedly offers various advantages for Aave: It seeks to provide stablecoin liquidity for both ETH and WBTC, attract new DeFi users to the platform, and cultivate brand loyalty among participants.

Looking ahead, the project intends to integrate additional assets that are not currently supported in Ethereum’s primary market by leveraging connections to traditional finance and institutional investments.

AaveDAO and WLFI Token Holders to Vote

Last month, Trump, along with several associates, including his sons Eric and Don Jr., and billionaire Steve Witkoff, unveiled World Liberty. The team has framed the initiative as a more “user-friendly” option compared to existing DeFi platforms like Aave, which can be complex for those lacking significant technical know-how.

In late September, the project initiated whitelists for selected accredited investors to acquire WLFI tokens. These tokens are available under a regulation from the U.S. Securities and Exchange Commission (SEC), which limits participation to high-net-worth or knowledgeable investors.

Nevertheless, the World Liberty team has previously stated its aim for all Americans to have access to the platform “in the future,” once approved and launched.

The draft proposal is now set to be reviewed by AaveDAO community members, who will determine whether to vote on allowing the Republican presidential candidate and his partners to establish their DeFi offering on Aave. Additionally, WLFI token holders will need to approve the proposal separately.