Trump-backed World LibertyFi wants to build on Aave platform

Donald Trump’s crypto project World Liberty Financial submitted a governance proposal to build an instance on the DeFi protocol Aave.

World Liberty Financial announced through an Oct. 9 governance proposal that it wants to launch its service as an Aave V3 instance on the Ethereum(ETH) mainnet. The decentralized protocol Aave(AAVE) will act as the back end to the platform.

According to the proposal, World Liberty Financial’s Aave V3 instance will focus on providing stablecoin liquidity for Ethereum and Wrapped Bitcoin (WBTC) as well as help grow the Aave protocol’s user base. WLF’s Aave will allow users to deposit in ETH, WBTC and stablecoins like USD Coin(USDC) and Tether(USDT).

WLF offer tokenholders overseeing the protocol, otherwise known as Aave DAO, 20% of the fees it generates and around 7% of the total supply of the platform’s governance token, WLFI.

In return, WLF asks Aave DAO to take part in procedures regarding WLF Governance, liquidity mining, and promotion of decentralization in the WLF platform.

In the proposal, the project suggests using the same reserve factor system as the main Aave instance and the implementation of a trustless smart contract as the basis for revenue split.

“WFL foresees onboarding assets that may not be compatible with the main market on the Ethereum Mainnet, leveraging its ties to traditional finance and institutional investment,” WLF stated as its future vision for the Aave instance.

The proposal itself will be subject to approval from the Aave DAO governance and the World Liberty Financial community.

In an X post announcing the news, WLF stated that they chose to partner with Aave for the launch because the quality of their lending and borrowing protocol, security practices and strong track record.

“Our proposal aligns perfectly with WLF’s mission: to provide a secure, accessible, and user-friendly DeFi experience for everyone. This is a major step forward in our journey!” stated WLF in a post.

In addition, the project also announced that it plans to build on the Scroll Network in the near future.

Former U.S President Donald Trump launched World Liberty Financial on Sept. 16, vowing in an X post that he will “make America the crypto capital of the world”. WLF is marketed as a project that provides borrowing and lending services and aims to be more user-friendly and accessible compared to existing DeFi platforms.