In line with the previously revealed information, the Trump family's DeFi project has officially partnered with the Aave lending platform.
The Trump family's DeFi project proposes to launch on Aave V3. Image: DL News
After identity verification, World Liberty Financial (WLF), the Trump family's DeFi project with the goal of replacing traditional banking, proposes to launch on the Ethereum mainnet of Aave V3.
🧵 1/5 We're excited to announce that World Liberty Financial has officially posted our governance proposal to Aave's forum to launch an Aave V3 instance on Ethereum Mainnet! 📜 Check it out here: https://t.co/CQRrBqDIVv
— WLFI (@worldlibertyfi) October 9, 2024
WLF has trusted Aave because this protocol is considered the best in the lending field with proven security barriers and operational track record, which can bring reliability to users.
According to the governance proposal on the Aave forum, WLF will support users to borrow or lend tokens such as ETH, WBTC, USDC, and USDT. Similar to Aave, depositors will receive interest rates from the fees paid by borrowers. WLF will integrate additional assets that are not compatible with the Ethereum mainnet market, through their relationships in the traditional finance and institutional investment sectors.
World Liberty Financial will use Aave's "reserve factor" system to allocate 20% of the protocol's interest rates to the Aave Ecosystem Reserve. This revenue sharing is done through a trustless smart contract.
After successfully integrating with Aave, WLF plans to expand to Scroll, an Ethereum layer-2 solution that has just scheduled its snapshot and token airdrop plan.
4/5 Next Steps: Scroll
— WLFI (@worldlibertyfi) October 9, 2024
Subject to WLFI governance approval, WLFI will also build on @Scroll_ZKP ZK L2, offering extremely low transaction fees and high throughput. This makes DeFi more affordable and accessible, allowing retail users to experience a seamless DeFi platform.
Before reaching a consensus on the launch, AAVE token holders need to vote on a temporary check. If approved, the project will move on to the stage of receiving community feedback, followed by testing and mainnet launch.
Marc Zeller, the founder of the Aave Chain Initiative, said that although he is not directly connected to former President Trump, he and the ACI team have supported WLF in using Aave's technology. He also expressed excitement at witnessing the unique collaboration between the two parties.
Cooperation with Aave is not surprising, as WLF had revealed in early September. At that time, World Liberty Financial also affirmed that it is not a fork of Aave, and pointed out that such "plagiarized" projects often fail in the past. Instead, WLFI will cooperate properly with Aave to create a new DeFi protocol.
During the livestream on 16/09, World Liberty Financial confirmed that it will issue the WLFI Governance Token and distribute it as follows: 63% sold to the public, 17% as liquidity rewards, and 20% retained for the project team.
However, WLFI will have primarily governance functions, and will have a "non-transferable" characteristic, meaning it cannot be traded, as well as investor identity verification (KYC). This may be one of the mechanisms to prevent the risk of SEC investigation under the guise of securities offering.
Although the project is closely related to the Trump family and the former President has repeatedly hinted at a bright future for the crypto industry if he is re-elected, the WLF project still raises a lot of controversies. From suspicions about "high returns" to accusations of plagiarizing a lesser-known DeFi protocol, and even hacking the X account.
On the other hand, many people also have faith in the project, which could draw attention to DeFi, an area that most Americans are still unfamiliar with. The fact is, despite over $57 billion being staked on the three largest blockchains - Ethereum, Solana, and TRON - DeFi still lacks real users.
Marc Zeller commented that WLF has the potential to popularize DeFi to new users. An Aave user named EzR3aL also expressed curiosity about the project and how new users will join the Aave platform.
Compiled by Coin68
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