Trump Crypto Project WLF proposes Ethereum Mainnet Aave v3 Instance

World Liberty Financial, also known as WLF, has proposed to launch on the Ethereum mainnet instance of Aave. Coined as a major move, it would help Aave and WLF make significant gains in the market. The core focus would be on providing stablecoin liquidity for wrapped BTC and Ethereum along with growing the user base of the AAVE protocol. Aave governance speculates that using Aave v3 will also provide liquidity also to other digital assets.

The proposal is currently under consideration and is subject to clearance by World Liberty Financial community approval plus AaveDAO governance approval. Only when there is a green signal from both sides, will it go live for the community to demonstrate its stand on the core objectives of the proposal.

A DeFi protocol, WLF, will help promote the segment to a larger audience via marketing efforts. Furthermore, the concept of overcollateralized borrowing and lending will be introduced to a new group of users. New users would only join the platform if the user experience was seamless. Therefore, this continues to be the primary topic of discussion for both Aave and WLF. It pertains to supplying and borrowing against digital assets.

Initial coverage of the proposal will only allow select tokens for deposit. These are USDT, USDC, ETH, and WBTC. Other digital assets are subject to realization by Aave, which would be mentioned when any progress is made. Users can only deposit these tokens as collateral and borrow the same asset. AaveDAO will receive 20% of the protocol fees that are generated by the instance. This is on top of 7% of the total supply of WLF tokens.

Getting token supply enables AaveDAO a key position in the WLF governance procedures, liquidity mining, and promotion of decentralization.

Aave will reap benefits such as attracting new users,  fostering brand loyalty, gaining recognition among DeFi users, and securing its position to the forefront of asset borrowing and supply market. To reiterate, the tokens on the list are solely for the initial phase and are likely to be expanded in the future. Other implementations are market inclusion, eMode, risk management, and user incentives.

However, the initial phase is likely to disable eMode. The dynamic adjustment of the supply of ETH and WBTC supply would drive risk management. Incentives for users will be rolled out in the form of WLF tokens.

However, AAVE has not yet responded to this development. The token is down by 0.30% in the last 24 hours, for a value of $141.94 at the time of writing this article. It further reflects a surge of 1.85% in the last 7 days and a rise of 3.52% in the last 30 days. According to recent Aave price prediction analyses, Aave is projected to surpass $150 by the end of October 2024.

In the future, it will be interesting to see if both sides can come to a consensus and, if so, what kind of feedback users provide to Aave and WLF.