Trump-Connected World Liberty Financial Proposes Launch on Aave's Ethereum Mainnet

SUMMARY

World Liberty Financial has officially proposed to launch Aave V3 on the Ethereum mainnet.
Users can borrow or lend assets like ETH, WBTC, USDC, and USDT.

World Liberty Financial, a DeFi project supported by the Trump family and friends, has proposed launching on Aave V3 on the Ethereum mainnet. The declaration was made on Wednesday, highlighting their choice of Aave for its superior lending and borrowing protocol. The team communicated confidence in Aave’s security practices and solid track record. They aim to provide a dependable platform for their clients by collaborating with Aave.

According to the governance proposal on the Aave forum, the WLF’s Aave V3 instance will permit clients to borrow or lend resources like ETH, WBTC, USDC, and USDT. Comparable to Aave, investors will gain interest from the fees paid by lenders. The group plans to onboard resources that may not be consistent with Ethereum’s primary market, leveraging ties to traditional finance and institutional investment.

World Liberty Financial will utilize Aave’s reserve factor framework to distribute 20% of the protocol’s interest to the Aave Ecosystem Reserve. This revenue sharing will be overseen through a trustless smart contract. Marc Zeller, originator of the Aave Chain Initiative, expressed that whereas he is not in direct contact with former President Trump, he and the ACI have helped the team learn how to utilize Aave’s tech stack.

If the Aave integration proves effective, the team intends to extend onto the Scroll Ethereum Layer 2. Amid a livestream on September 16, the project declared plans to offer a non-transferable governance token to accredited investors. The WLFI token distribution will designate 63% for public sales, 17% for user rewards, and 20% for team compensation.

While former President Trump is seen positively in the crypto industry, World Liberty Financial has confronted skepticism. However, a few accept the project can draw interest in the DeFi division, which remains largely obscure to numerous Americans. Despite over $57 billion staked in major DeFi conventions on Ethereum, Solana, and Tron, client engagement is still low.

Zeller noted that World Liberty Financial has the potential to present new audiences to decentralized finance. Aave user EzR3aL communicated interest in the project’s advancement and its impact on Aave’s user base. The income and token-sharing show recommends a strong relationship between WLF and Aave.

Before moving forward, Aave token holders must vote on a “temp check.” If passed, this will start a community feedback period, followed by testing and mainnet launch. The WLF group emphasized that launching the protocol could help develop Aave’s authority in digital resource borrowing and supply.