An analysis
Trump’s Crypto Venture Proposes Aave Integration in Governance Strategy for World Liberty Financial
World Liberty Financial (WLF), a crypto project launched by former US President Donald Trump, has proposed integrating with the DeFi platform Aave. The proposal, made on 9th October, aims to get permission to establish a new instance on Aave V3 with Ethereum mainnet. According to the announcement, the lending and borrowing protocol Aave will provide the backend for WLF.
This proposal details WLF’s strategy to concentrate on markets that are associated with stablecoins, such as USDC and USDT and other tokens, such as ETH and WBTC. This project focuses on increasing the usage of Aave and drawing more liquidity to the protocol. This, in turn, will enable the users of WLF’s Aave V3 instance to deposit in ETH, WBTC, and stablecoins, making it easier for the masses to access DeFi applications.
WLF has also granted the Aave DAO, which is the governing body of the Aave protocol, a cut of the fees it has earned. In return, the Aave DAO will earn 20% of the fees made by WLF and 7% of the total supply of the governance token of the platform, WLFI. WLF has also invited Aave DAO to join the governance, liquidity mining, and decentralization initiatives of the platform.
Smart Contract Will Handle Revenue Sharing
WLF proposed to use the same reserve factor model as Aave’s mainnet as part of its governance proposal. The revenue share will be handled by a trustless smart contract to avoid any form of manipulation between the two parties.
The project has also shown interest in onboarding assets that may not be fully aligned with the main Ethereum market. With its connection to traditional finance and institutional investment, WLF has the potential to expand its platform to include other types of assets
