The cryptocurrency platform World Liberty Financial, supported by Donald Trump, has proposed to operate as an instance on the decentralized finance (DeFi) protocol Aave.
Launching Services on Aave Platform
In a proposal dated October 9, #WorldLibertyFinancial announced plans to launch its service as an Aave v3 instance on the #etherreum mainnet, with Aave serving as the project's underlying platform.
As part of the proposal, the project has offered AaveDAO – a group of Aave token holders overseeing the protocol – 20% of the fees it generates, along with 7% of its own governance token supply, WLFI.
Increasing Liquidity and Expanding the User Base
Trump's crypto project stated that operating as an Aave instance would help boost liquidity for stablecoins, Ether, and wrapped #bitcoin☀️ , which it plans to host, while also expanding Aave's user base. The proposal also revealed that World Liberty Financial would initially allow deposits in Ether (ETH), Wrapped Bitcoin (WBTC), and stablecoins USD Coin (#USDC ) and Tether (USDT).
Using Aave’s Reserve Factor and Revenue Distribution
The project proposed using the same reserve factor as Aave's main instance and setting up revenue distribution through a trusted smart contract.
Discussion and Voting on the Proposal
Members of AaveDAO can now discuss the proposal before it goes to a vote. Additionally, holders of WLFI tokens, who govern the World Liberty Financial platform, will need to approve the proposal separately.
Potential Expansion to Scroll Blockchain
In a post dated October 9, World Liberty Financial stated that the proposal “perfectly fits” to create a user-friendly DeFi experience. The project also noted that if the Aave integration is successful, it plans to expand to the Ethereum layer 2 Scroll blockchain.
Slowly Unveiled Project Details
Details about the World Liberty Financial platform have been slowly revealed. Trump has previously shared cryptic posts about the project, hinting at plans to expand the use of US dollar-pegged stablecoins.
In a recent X livestream, where it was expected that Trump would reveal more information about the crypto project, there was little mention of cryptocurrencies, and the project wasn’t discussed.
WLFI Token and Platform Features
Later, the World Liberty financial team disclosed details about its token, WLFI. A leaked white paper stated that the platform would allow users to store money in a digital wallet, offer a credit account system, enable users to borrow or lend cash to others, and use tokens to invest in assets such as cryptocurrencies.
Similar to Dough Finance Services
The platform will be open source and offer lending services similar to Dough Finance. The team includes four individuals who helped build the DeFi protocol. Dough Finance lost $1.8 million in a flash loan attack in July.
#donaldtrump
What do you think about World Liberty Financial's plans to partner with Aave on a DeFi platform? Do you think Trump's crypto project can make its mark in the decentralized finance world? Share your thoughts and let us know what potential you see in this project!
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