The Trump’s crypto project, World Liberty Financial, has submitted a governance proposal to Aave, confirming it would be built on the decentralized finance (DeFi) platform.

In the Oct. 9 proposal, World Liberty Financial said it wants to launch its service as an Aave v3 instance on the Ethereum mainnet, with the protocol acting as the back end to the platform.

It floated giving AaveDAO, a group of Aave tokenholders overseeing the protocol, 20% of the fees it generates and 7% of the supply of the platform’s governance token, WLFI.

The Donald Trump-backed project said running as an Aave instance would boost liquidity for the stablecoins, Ether and Wrapped Bitcoin it plans to host while growing Aave’s user base.

The proposal revealed World Liberty Financial would — at least initially — allow deposits in Ether and WBTC along with stablecoins USD Coin and Tether.

The project has also proposed to use the same reserve factor system as the main Aave instance and a trustless smart contract to set up the revenue split.

AaveDAO members can now discuss the proposal before voting on it. WLFI tokenholders who govern the World Liberty Financial platform will also have to approve the proposal separately.

In an Oct. 9 X post, World Liberty Financial said the proposal “aligns perfectly” to create an easily accessible DeFi user experience.

It added if the Aave integration is successful, it plans to expand to the Ethereum layer 2 blockchain Scroll.

Full details about the platform have been slowly revealed. Trump has previously made several cryptic posts about World Liberty Financial, and the project has suggested it wants to spread the use of US dollar-pegged stablecoins.

In an X livestream last month, it was expected Trump would share the full details of his family’s crypto project, headed by sons Eric and Donald Trump Jr.

But he barely spoke about crypto in the 45-minute talk — which came a day after a second attempt on his life in Florida — and didn’t mention the project once.

The World Liberty Financial team later revealed details about its WLFI token.

A leaked white paper said the project would allow users to store money in a digital wallet, offer a credit account system, borrow or lend cash to others, and use tokens to invest in assets like crypto. 

It also said the platform would be open source and provide a similar borrowing and lending service to Dough Finance, with four people who helped build the DeFi protocol on the team. 

Dough Finance lost $1.8 million in July after a flash loan attack.

Source : Cointelegraph - Oct 10, 2024