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World Liberty Financial (WLFI) — the cryptocurrency project of former United States president Donald Trump — submitted a governance proposal to Aave (AAVE) to link the two projects.
The Oct. 9 proposal suggests deploying a World Liberty Financial Aave instance that would be focused on providing stablecoin liquidity for Ethereum (ETH) and Wrapped Bitcoin (WBTC) as well as growing the Aave protocol user base. The proposal promises benefits for Aave would include bringing a significant number of new users and liquidity, building brand loyalty, and maintaining Aave’s position as a decentralized finance (DeFi) market leader.
If accepted, the proposal would create an Aave instance on the Ethereum blockchain and Aave’s decentralized autonomous organization (DAO) would receive 20% of the generated fees and 7% of WLFI’s supply. The DAO would also be able to participate in WLFI governance and liquidity mining.
The proposal noted that World Liberty Financial would allow for deposits in Ethereum and Wrapped Bitcoin as well as stablecoins Tether (USDT) and USD Coin (USDC). The text also proposed using the same reserve factor system as the main Aave instance and a trustless smart contract to set up the revenue split between the linked protocols.
🧵 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
In an Oct. 9 X post, World Liberty Financial explained that the collaboration “aligns perfectly” with the project’s mission. That mission, the post explains, is “to provide a secure, accessible, and user-friendly DeFi experience for everyone.” The post also explains why Aave was chosen as a partner:
“We chose Aave because it’s the best-in-class lending & borrowing protocol with top-notch security practices and a strong track record. Partnering with Aave enables us to deliver a reliable platform our users need. Just use Aave.”
As ReadWrite reported, World Liberty Financial opened up sign-ups earlier this month, although not all Americans are eligible. Selected participants were able to connect to the platform if accredited investors, with plans to open up to more people down the line, according to a post on X.
