World Liberty Financial has taken to social media to announce its plans to launch on the Ethereum mainnet using Aave. The DeFi project backed by the Trump family and associates, stated that it picked Aave because it’s the best lending and borrowing protocol out there.
Additionally, the protocol comes with strong security practices and a solid track record. Partnering with Aave allows World Liberty Financial to build a dependable platform for its users.
According to their official proposal on the Aave forum, WLF’s Aave v3 platform will enable users to lend or borrow ETH, WBTC, USDC, and USDT. Just like Aave, depositors will earn interest from the fees paid by borrowers.
🧵 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
Aave Chain Initiative Founder Reactions to World Liberty Financial Proposal
Marc Zeller, founder of the Aave Chain Initiative, said that while he hasn’t directly communicated with the former president, he and the ACI have been helping the WLF team get familiar with Aave’s technology.
“We’re excited to see how the WLF team is uniquely integrating the Aave Stack,” he shared.
The team aims to bring in assets that don’t quite fit with the main market on Ethereum Mainnet, using their strong connections in traditional finance and institutional investment. World Liberty Financial plans to use Aave’s reserve factor system to direct 20% of the protocol’s interest earnings to the Aave Ecosystem Reserve. This revenue-sharing arrangement will work through a trustless smart contract.
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If the Aave integration goes well, the team plans to expand to the Scroll Ethereum Layer 2 network. On September 16, during a livestream, the project announced its plan to sell a governance token that cannot be transferred to other parties. The WLFI token will be allocated like this: 63% will be available to the public, 17% will be reserved for user rewards, and 20% will go towards team compensation.
How Donald Trump’s Presence is Affecting the World Liberty Project
While former President Donald Trump has found a warm reception in much of the crypto world, the World Liberty project has raised some eyebrows. Not everyone is on board with it. Still, some see potential in the Trump-linked initiative. They believe it could draw more attention to a sector that many Americans know little about. Even with more than $57 billion locked in various DeFi protocols across Ethereum, Solana, and Tron, decentralized finance remains short on active users.
“World Liberty Financial has the potential to introduce new audiences to the decentralized finance ecosystem,” said Zeller.
Aave user EzR3aL expressed curiosity about how this new instance will develop and what kind of new user base it might bring to Aave. According to the user, the revenue and token-sharing arrangement seems fair and emphasizes the importance of maintaining a positive relationship for WLF.
Aave token holders first need to vote on a “temp check.” If it passes, this will lead to a community feedback phase, followed by testing, and eventually a mainnet launch. The WLF team mentioned that launching the protocol could help Aave stay ahead as a top player in digital asset lending and borrowing.
Look Into Aave and Ethereum Prices Today
Today, Aave (AAVE) is priced at $141, with a trading volume of $184,141,241 over the past 24 hours. The price has dipped by 0.32% during this period, bringing its market cap to $2 million. Meanwhile, Ethereum saw its price drop by 1.77% within a day and is currently trading around the $2,389 zone. It has seen a trading volume of over $14,563,739,752 during this period.
In conclusion, World Liberty Financial’s launch on the Ethereum mainnet through Aave has drawn both interest and skepticism. While its ties to the Trump family raise concerns for some, supporters see it as a chance to expand awareness of decentralized finance. Despite significant capital in DeFi platforms, user engagement remains a challenge. Ultimately, the success of World Liberty Financial will depend on its ability to convert curiosity into active participation in the DeFi space.
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