Donald Trump’s crypto venture, World Liberty Financial, has submitted a governance proposal to Aave to build its decentralized finance (DeFi) platform on the Aave v3 instance on the Ethereum mainnet. The proposal includes a revenue-sharing plan that offers AaveDAO, Aave’s governing body, 20% of the platform’s generated fees and 7% of its governance token, WLFI. The goal is to enhance liquidity for digital assets like Ether, Wrapped Bitcoin, and stablecoins using Aave’s infrastructure. This partnership aims to expand Aave’s user base and strengthen World Liberty Financial’s position in the DeFi ecosystem.
Initially, the platform plans to support deposits in Ether, Wrapped Bitcoin, and stablecoins like USD Coin and Tether while adopting a reserve factor model similar to Aave’s main protocol. The revenue split between the parties will be handled by a trustless smart contract. The AaveDAO members will review and debate the proposal before casting their votes, and World Liberty Financial’s governance token holders will have to approve the integration separately. The project also hinted at future plans to expand onto the Ethereum layer-2 network, Scroll, if the integration with Aave is successful.
Although the details of World Liberty Financial’s platform have been gradually disclosed, Donald Trump has kept specifics under wraps, particularly after an attempted attack on his life in Florida. During a recent livestream where he was expected to provide insights into the project, Trump barely touched on cryptocurrency. Subsequent communications from the World Liberty Financial team revealed more information, including details about the WLFI token and its intended functionalities, such as providing a digital wallet, a credit system, and options for borrowing or lending.
A survey conducted by Fairleigh Dickinson University’s (FDU) Poll found that crypto owners are more inclined to support former President Donald Trump, while those without digital assets lean towards Vice President Kamala Harris. 50% of crypto holders support Trump, who has recently become a vocal advocate for digital currencies, while only 38% back Harris. At the Bitcoin 2024 conference, Trump made promises to strengthen the U.S. position in cryptocurrency and dismantle regulatory barriers. His campaign has also embraced crypto donations, although regulatory limits forced the return of $1 million in Bitcoin contributions from Tyler and Cameron Winklevoss.
In conclusion, World Liberty Financial is planning to build its DeFi platform on Aave to enhance liquidity for digital assets and expand Aave’s user base. The proposal includes a revenue-sharing plan with AaveDAO and the integration of the reserve factor model used by Aave’s main protocol. While specifics of the platform have been gradually disclosed, Donald Trump has kept details under wraps, focusing on other matters in recent communications. A survey found that crypto owners favor Trump, who has become a vocal advocate for digital currencies, over Vice President Kamala Harris. Trump has made promises to strengthen the U.S. position in cryptocurrency and embrace crypto donations in his campaign.
