Donald Trump’s crypto venture, World Liberty Financial, aims to build its decentralized finance (DeFi) platform on Aave.
On October 9, the project submitted a governance proposal to Aave, indicating that it plans to build its DeFi service as an Aave v3 instance on the Ethereum mainnet.
The move would position Aave’s protocol as the backbone of World Liberty Financial’s platform.
World Liberty Financial Offers AaveDAO 20% of its Fees
The proposal outlines a revenue-sharing plan, offering AaveDAO—Aave’s governing body comprising $142.37 tokenholders—20% of the platform’s generated fees and 7% of its governance token, WLFI.
The goal is to utilize Aave’s infrastructure to enhance liquidity for key digital assets, including Ether (ETH), Wrapped Bitcoin (WBTC), and various stablecoins.
The project team believes this partnership could significantly expand Aave’s user base while strengthening World Liberty Financial’s position in the DeFi ecosystem.
Initially, the platform plans to support deposits in ETH, WBTC, and popular stablecoins like USD Coin (USDC) and Tether (USDT).
It also aims to adopt the same reserve factor model used by Aave’s main protocol, relying on a trustless smart contract to handle the revenue split between both parties.
The AaveDAO members will now review and debate the proposal before casting their votes.
World Liberty Financial’s governance token holders will also have to approve the integration separately.
In a post on X, World Liberty Financial stated that the proposal “aligns perfectly” with its vision of creating a user-friendly DeFi experience.
The project also hinted at future plans to expand onto the Ethereum layer-2 network, Scroll, if the integration with Aave is successful.
Though the details of World Liberty Financial’s platform have been gradually disclosed, Trump himself has kept specifics under wraps.
During a recent X livestream, where he was expected to provide more insights into the project, Trump barely touched on cryptocurrency.
The livestream followed a day after an attempted attack on his life in Florida, and the focus remained elsewhere.
Subsequent communications from the World Liberty Financial team unveiled more information, including details about the WLFI token and its intended functionalities.
According to a leaked white paper, the platform aims to provide a digital wallet for storing funds, a credit system, and options for borrowing or lending.
Crypto Owners Favor Trump
Crypto owners are more inclined to support former President Donald Trump, while those without digital assets lean towards Vice President Kamala Harris, according to a survey conducted by Fairleigh Dickinson University’s (FDU) Poll.
The survey, led by Dan Cassino, professor of government and politics and executive director of the FDU Poll, found that among these, 50% support Trump, who has recently become a vocal advocate for digital currencies.
In contrast, only 38% of crypto holders back Harris.
At the Bitcoin 2024 conference, Trump made bold promises to strengthen the U.S. position in cryptocurrency, vowing to dismantle regulatory barriers and establish a national reserve of Bitcoin.
“The day I take the oath of office, Joe Biden’s and Kamala Harris’s anti-crypto crusade will be over,” he declared.
The former president’s campaign has also embraced crypto donations, although regulatory limits forced the return of $1 million in Bitcoin contributions from Tyler and Cameron Winklevoss.
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