- World Liberty Financial submitted a proposal to build on the Aave V3 protocol using the Ethereum mainnet.
- The project will provide liquidity for ETH, WBTC, and stablecoins.
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.
🧵 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
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.
The governance proposal is still pending for voting from both the Aave DAO and the WLF community. This would be a major milestone in the objectives of WLF to develop a simple and inclusive DeFi platform for users.
In addition to the proposal submitted for Aave, WLF has also shared its plans to develop the Scroll Network, another blockchain protocol. Although no time frame has been provided for the integration, this marks WLF’s larger plan of offering DeFi solutions outside Ethereum.
Leaked White Paper Describes Platform’s Planned Functions
While the details of World Liberty Financial are still slowly coming out, the fact that Trump is involved in the project has attracted interest. The project has already suggested that it would concentrate on the US dollar-backed stablecoins. Last month, Trump was supposed to give more details about the project during a live broadcast, but he did not reveal much about the objectives of the project.
More information was provided by the white paper that has been leaked, which describes functions such as a digital wallet, credit lines, and opportunities to borrow, lend, and invest in cryptocurrencies. The document also shows that the platform will be open-source and enable borrowing and lending services just like Dough Finance does.
