TLDR:
- An initiative named World Liberty Financial, which has Trump's backing, is in the process of submitting a plan to go live on Aave's Ethereum blockchain network.
- The project's primary ambition is to enable lending and borrowing features for digital currencies such as ETH, WBTC, USDC, and USDT.
- As per the arrangement, AaveDAO would collect 20% of the fees generated, along with 7% of the WLFI tokens.
- World Liberty Financial seeks to attract individuals who are aware of Trump but new to DeFi.
- Should the proposal receive approval, every user of Aave, including those in the United States, would have access to the platform.
World Liberty Financial, an undertaking backed by former President Donald Trump and his network, has formally put forward a plan to roll out on Ethereum through Aave’s decentralized finance framework.
The proposal, announced on October 9, 2024 The venture's agenda is to provide an array of borrowing and lending services within the cryptocurrency space.
World Liberty Financial is planning to operate as a distinct instance within Aave's v3 ecosystem, leveraging its well-established DeFi infrastructure to support initial deposits in Ethereum, Wrapped Bitcoin, and specific stablecoins. USD Coin (USDC) and Tether (USDT).
World Liberty Financial has proposed sharing a fifth of the accrued protocol fees with AaveDAO, which consists of the Aave token holders managing the system.
Included in the plan is the proposal to distribute 7% of WLFI’s governance token stockpile to AaveDAO.
The project, supported by Trump, is keen on crafting a DeFi environment that's more accessible, especially for Trump-affiliated individuals venturing into decentralized finance, asserting that this could draw a large influx of users and liquidity into Aave's ecosystem.
Storyline 1/5: Thrilled to disclose that World Liberty Financial has officially introduced our administrative proposal to Aave’s forum! Keen on starting an Aave V3 incidence on Ethereum Mainnet. https://t.co/CQRrBqDIVv
— WLFI (@worldlibertyfi) October 9, 2024
Approval of the proposal could make World Liberty Financial available to Aave's entire user base, including Americans.
This extensive accessibility brings up potential regulatory scrutiny, as similar U.S.-based DeFi initiatives have already caught the attention of the Securities and Exchange Commission (SEC) over concerns regarding the issuance of unregistered securities.
The proposal is undergoing dialogue within the AaveDAO community circles, who hold the final vote on whether Trump and his partners can forge their DeFi offering on Aave's infrastructure. Additionally, approval from holders of the WLFI token is also needed.
Plans are in place for World Liberty Financial to expand to Ethereum's layer 2 blockchain, Scroll, contingent on successful integration with Aave. Key figures in the project include Trump's sons, Eric and Donald Jr., along with New York mogul Steve Witkoff, aiming to offer a dependable platform through their partnership with Aave.
Marc Zeller, who pioneered the Aave Chain Initiative, expressed intrigue about how World Liberty Financial might widen the DeFi ecosystem's user base. Several within the Aave community see promise in the proposal, highlighting the fairness in revenue distribution and token allocation.
The launch hinges on an array of affirmative steps, including preliminary approval votes, communal feedback collections, and test phases preceding any mainnet debut, to get World Liberty Financial running on Aave.
As of late 2024, the total value locked within DeFi protocols across the top three chains breached the $57 billion mark, yet DeFi's existence is somewhat elusive to most Americans. Ventures like World Liberty Financial might bridge this gap, bringing decentralized finance concepts to a broader audience. Ethereum , Solana , and Tron Editor-in-Chief at Blockonomi and creator of Kooc Media, a British-based digital media enterprise. Advocate for Open-Source Software, Blockchain innovation, and the vision of a universally free and equitable Internet.
