Donald Trump's crypto project World Liberty Financial (WLF) 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 exchange, 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 obtained as a reward
Furthermore, the new ethereum-mainnet-proposal/19383″ target=”_blank” rel=”noopener” data-wpel-link=”external”>proposal claims that users will earn WLFI tokens as a reward for participating in World Liberty liquidity pools. However, questions still remain about how AaveDAO will manage 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 loans. Revenue sharing will be done through a trustless smart contract.
This initiative reportedly offers several advantages 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 capitalizing on connections with traditional institutional and financial investments.
AaveDAO and WLFI token holders will 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 select accredited investors to purchase WLFI tokens. These assets are offered under 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 previously x.com/worldlibertyfi/status/1840776612981121525″ target=”_blank” rel=”noopener” data-wpel-link=”external”>voiced its intention for all Americans to access the platform “in the future,” pending approval and eventual launch.
The draft proposal will now be discussed by AaveDAO community members, 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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