Trump-backed World LibertyFi wants to build on Aave platform

Donald Trump’s crypto project World Liberty Financial has submitted a management proposal to build an instance on DeFi protocol Aave.

World Liberty Financial announced in a governance offering on October 9 that it intends to launch its service as an Aave V3 instance on the Ethereum(ETH) mainnet. The decentralized protocol Aave(AAVE) will serve as the backend of the platform.

According to the proposal, World Liberty Financial’s Aave V3 instance will focus on providing stablecoin liquidity for Ethereum and Wrapped Bitcoin (WBTC) and growing the user base of the Aave protocol. WLF’s Aave will allow users to deposit funds into ETH, WBTC, and stablecoins such as USD Coin (USDC) and Tether (USDT).

WLF offers token holders who oversee the protocol, also known as Aave DAO, 20% of the fees it generates and approximately 7% of the total supply of the platform’s governance token, WLFI.

In turn, WLF asks the Aave DAO to take part in procedures regarding WLF Governance, liquidity mining and supporting decentralized management on the WLF platform.

In the proposal, the project proposes using the same reserve factor system as the main Aave example and implementing a trusted smart contract as the basis for revenue sharing.

As for the future vision for the Aave example, WLF stated: “WFL envisions the inclusion of assets that may not be compatible with the main market on the Ethereum Mainnet, leveraging its ties to traditional finance and institutional investment.”

The offering itself will be subject to approval by Aave DAO management and the World Liberty Financial community.

🧵 1/5 We are excited to announce that World Liberty Financial has officially published our governance proposal on the Aave forum to launch an Aave V3 instance on the Ethereum Mainnet! 📜 Check it out here: https://t.co/CQRrBqDIVv

— WLFI (@worldlibertyfi) October 9, 2024

In an X post announcing the news, WLF stated that they chose to partner with Aave for the launch due to the quality of their lending and borrowing protocols, security practices, and strong track record.

“Our offering aligns perfectly with WLF’s mission: to provide a safe, accessible and user-friendly DeFi experience for everyone. This is a huge step forward in our journey!” stated WLF in a post.

The project also announced that it plans to build on Scroll Network in the near future.

Former US President Donald Trump launched World Liberty Financial on September 16, promising to “make America the crypto capital of the world” in his X post. WLF is marketed as a project that offers borrowing and lending services and aims to be more user-friendly and accessible compared to existing DeFi platforms.