Trump's World Liberty proposes Aave integration with WLFI token

Former President Donald Trump's decentralised finance (DeFi) project, World Liberty Financial, has taken a significant step by submitting a proposal to Ethereum-based platform Aave (CRYPTO:AAVE). 

The proposal seeks to launch World Liberty as an instance on Aave’s decentralised lending protocol, using Aave’s infrastructure to support its DeFi services. 

In return, AaveDAO, Aave’s governing body, would receive 20% of all protocol fees generated by World Liberty, along with 7% of the supply of WLFI, the project’s governance token. 

WLFI tokens, initially described as “non-transferrable,” will be used to reward users participating in World Liberty’s liquidity pools. 

However, it remains unclear how AaveDAO will handle the non-transferrable tokens.

World Liberty intends to provide liquidity for Ethereum (CRYPTO:ETH), Wrapped Bitcoin (CRYPTO:WBTC), and stablecoins like USDC (CRYTO:USDC) and USDT (CRYPTO:USDT).  

The project is positioning itself as a more “user-friendly” DeFi option, particularly targeting users familiar with Trump's brand but less knowledgeable about the complexities of digital assets and liquidity pools.

In September, Trump and his associates, including his sons Eric and Don Jr., and New York billionaire Steve Witkoff, launched World Liberty. 

The platform aims to offer borrowing and lending services for cryptocurrencies, similar to other DeFi protocols like Aave.

World Liberty opened whitelists in late September for accredited investors to purchase WLFI tokens. 

These tokens will be offered under a U.S. Securities and Exchange Commission (SEC) rule, limiting participation to knowledgeable and wealthy investors to mitigate risk.

At the time of writing, the Aave price was $139.49.