Trump’s World Liberty Financial Presents Proposal to Ethereum DeFi Protocol Aave

Donald Trump’s crypto project, World Liberty Financial (WLF), has submitted a proposal to the Aave governance forum. The former president and his business partners plan to use the platform for their cryptocurrency offering.

The presentation aims to establish WLF services as an instance on Aave, with the protocol providing the necessary underlying infrastructure. In return, AaveDAO will receive 20% of all protocol fees generated by WLF and 7% of the supply of WLFI, the project’s governance token.

WLFI tokens will be earned as rewards

Additionally, the new proposal states that users will earn WLFI tokens as rewards for participating in World Liberty liquidity pools. However, questions remain about how AaveDAO will manage the custody of the WLFI tokens and distribute them, as the Trump Project had labeled them as non-transferable.

Initially, WLF plans to accept deposits in Ethereum (ETH), Wrapped Bitcoin (WBTC), and the two leading stablecoins, USDC and USDT, allowing users to leverage these assets as collateral for borrowing. Revenue sharing will be done through a trustless smart contract.

This initiative reportedly offers several benefits for Aave: it aims to provide stablecoin liquidity for ETH and WBTC, attract first-time DeFi users to the platform, and build brand loyalty among participants.

In the future, the project plans to incorporate additional assets that are not currently supported by the Ethereum primary market by leveraging connections with traditional financial and institutional investments.

AaveDAO, WLFI token holders to participate in voting

Last month, Trump and several of his associates, including his sons Eric and Don Jr. and billionaire Steve Witkoff, announced World Liberty. The team has positioned the project as a more “user-friendly” alternative to existing DeFi options like Aave, which can be difficult to navigate without considerable technical expertise.

In late September, the project opened whitelists for selected accredited investors to purchase WLFI tokens. These assets are offered pursuant to a regulation by the US Securities and Exchange Commission (SEC) that allows only high net worth or knowledgeable investors to participate.

However, the World Liberty team has previously expressed their intention for all Americans to access the platform “in the future,” pending approval and eventual launch.

The draft proposal will now be discussed by members of the AaveDAO community, who will decide whether to vote to allow the Republican presidential candidate and his business partners to build their DeFi offering on Aave. WLFI token holders will also need to approve the proposal separately.

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