World Liberty Financial, a decentralized finance (DeFi) initiative linked to Donald Trump, has put forward a governance proposal to Aave, a DeFi lending system on Ethereum.
In the proposal, presented on October 9, the project seeks to launch its own Aave v3 instance.
If approved, AaveDAO would receive 20% of the platform’s fees, along with 7% of the total supply of WLFI, the governance token for World Liberty Financial.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe – We publish new crypto explainer videos every week!
What is Decentralized Crypto Gambling? (Animated Explainer)
The project has also proposed adopting Aave’s reserve factor system for WLFI and utilizing a trustless smart contract to ensure transparent and secure revenue sharing.
World Liberty Financial claims that this integration would increase liquidity for digital assets such as Ether (ETH), Wrapped Bitcoin (WBTC), stablecoins like USD Coin (USDC) and Tether (USDT), while also expanding Aave’s user base.
The AaveDAO community is now invited to discuss and vote on the proposal. Approval from World Liberty Financial’s WLFI token holders will also be required before the partnership can proceed.
Looking ahead, the project hinted that if the collaboration with Aave succeeds, it plans to expand its operations to Scroll, a Layer-2 scaling solution on Ethereum.
Though the project’s details are still emerging, the Trump family has previously made references about it on social media, promising a DeFi platform for crypto lending and borrowing. One of its main objectives appears to be promoting stablecoins pegged to the US dollar, as a way to maintain the US’ financial dominance.
Donald Trump was expected to reveal more about the project during an X Spaces live stream on September 16, but he made minimal mention of crypto or the initiative itself.
While signups for the platform began on September 30, access has been restricted to accredited investors due to US Securities and Exchange Commission regulations.
Gode is a Web3 Market Analyst who researches the most important industry events and interprets how they affect the wider Web3 space. Her formal education in media culture & digital rhetoric allows her to employ a methodical approach to evaluating critical Web3 news data, including large-scale events and the wider social sentiment within the ecosystem.
Gode is a mutilingual professional, having studied in multiple universities all across Europe. This allows her to have a one-of-a-kind opportunity to analyze Web3 social sentiments spanning different cultures and languages and, in turn, develop a much deeper understanding of how the Web3 space is growing within different communities. With the rest of her team, Gode works to identify crucial crypto news patterns and provide unbiased and data-driven information.
Gode’s passions include working and communicating with people, and when she’s not researching Web3 news, she spends her time traveling and watching true crime documentaries.
