David Edwards
World Liberty Financial (WLF), a decentralized finance (DeFi) project backed by the Trump family and associates, has formally proposed to launch on Aave’s Ethereum mainnet. The announcement, made on Wednesday, highlighted WLF’s intention to leverage Aave’s widely regarded lending and borrowing platform to establish a secure and reliable DeFi service.
“We chose @aave because it’s the best-in-class lending & borrowing protocol with top-notch security practices and a strong track record. Partnering with Aave enables us to deliver a reliable platform our users need,” the WLF team shared on X (formerly Twitter).
According to WLF’s governance proposal submitted on Aave’s forum, the project’s Aave v3 instance will enable users to borrow or lend popular assets such as ETH, WBTC, USDC, and USDT. In line with Aave’s model, depositors will earn interest through fees paid by borrowers. WLF has indicated plans to onboard additional assets, particularly those not currently supported on the Ethereum mainnet, tapping into its connections within traditional finance and institutional investment sectors.
WLF will also integrate Aave’s reserve factor mechanism, directing 20% of protocol-generated interest to the Aave Ecosystem Reserve through a trustless smart contract.
Marc Zeller, founder of the Aave Chain Initiative, expressed enthusiasm for WLF’s integration of the Aave tech stack, stating, “We’re thrilled to witness the unique integration of the Aave Stack by the WLF team.”
If successful on the Aave mainnet, World Liberty Financial aims to expand to Scroll, an Ethereum Layer 2 solution, to further enhance scalability.
In a recent livestream, WLF confirmed plans to offer its non-transferable governance token, WLFI, to accredited investors. The token distribution will allocate 63% for public sale, 17% for user rewards, and 20% for team compensation.
Although former President Donald Trump has become increasingly accepted within the crypto community, World Liberty Financial’s connections to the Trump family have sparked mixed reactions. Some remain skeptical, while others believe the project could help attract a broader audience to the DeFi space, which currently boasts over $57 billion staked across major blockchains like Ethereum, Solana, and Tron but remains underutilized by the general public.
“World Liberty Financial has the potential to introduce new audiences to the decentralized finance ecosystem,” Zeller noted.
Aave token holders must first vote on a preliminary “temp check” proposal, after which a period of community feedback and testing will follow, leading to a potential mainnet launch. WLF’s proposal suggests the initiative could strengthen Aave’s standing as a leader in the digital asset lending and borrowing market.
