Donald Trump’s Defi project World Liberty Financial has submitted a proposal to build on Aave’s Ethereum platform, offering a share of fees and governance tokens to AaveDAO.
World Liberty Financial, the newly launched decentralized finance (DeFi) project by former US president Donald Trump and his team has recently submitted a proposal with plans to build on Ethereum DeFi platform Aave.
On Wednesday, Trump DeFi project World Liberty Financial proposed that it works as an instance on Aave. Thus, the Ethereum DeFi platform would provide the necessary infrastructure for governance and other matters for World Liberty to function.
In return, AaaveDAO, a group of Aave token holders overseeing DeFi protocol, will get 20% of the fees that the World Liberty project generates along with 7% supply for the platform’s governance token WLFI.
Initially, there were reports that the WLFI token would be “non-transferrable”. However, Wednesday’s proposal shows that users would receive the token as a reward for participating in the World Liberty liquidity pools. However, it’s still not clear how would the Trump DeFi project allow AaveDAO to take custody of WLFI tokens and later dole them out to users such that the tokens are non-transferable.
Now, it’s up to the AaveDAO community members to decide whether they should vote to allow Trump and his associates to build their DeFi offering on Aave’s decentralized lending protocol. Additionally, the WLFI token holders would also need to vote separately.
Aave Instance will Boost Liquidity for Stablecoins
The project, supported by former US President Donald Trump, stated that operating as an Aave instance would enhance liquidity for the stablecoins, Ether ETH $1 604 24h volatility: 1.8% Market cap: $193.64 B Vol. 24h: $5.43 B , and Wrapped Bitcoin WBTC $85 102 24h volatility: 0.7% Market cap: $10.95 B Vol. 24h: $108.76 M it aims to host, while also broadening Aave’s user base.
According to the proposal, World Liberty Financial will initially support deposits in Ether and WBTC, along with the stablecoins USD Coin USDC $1.00 24h volatility: 0.0% Market cap: $60.89 B Vol. 24h: $4.46 B and Tether USDT $1.00 24h volatility: 0.0% Market cap: $144.79 B Vol. 24h: $20.47 B .
The goal here is to attract first-time DeFi users who have heard about World Liberty Financial but are less familiar with the intricacies involved with liquidity pools and digital asset borrowing. Last month, Trump and his associates announced the World Liberty DeFi projects with the plans of offering borrowing and lending services for digital assets on the Ethereum blockchain network. Unlike a vast variety of dApps running of DeFi protocol, World Liberty Financial plans to keep its services focused on lending and borrowing.
In its proposal to AaveDAO members, the World Liberty team pledged that their project would “bring a substantial influx of new users and liquidity to Aave”. Furthermore, the Trump Defi project added that if successful with Aave integration, they would further expand their services to Ethereum layer 2 blockchain Scroll.
It seems that Donald Trump and his team are taking crypto progress seriously as the former US president vows to make America the crypto capital of the world if re-elected to the White House in the 2024 Presidential elections.
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