World Liberty Financial (WLF), a controversial DeFi project linked to the Trump family, has recently proposed launching its platform by integrating with Aave V3, one of the most respected lending and borrowing protocols on the Ethereum blockchain.
This announcement marks a crucial milestone for the project, which aims to fully integrate into the DeFi ecosystem. WLF users will be able to borrow or lend digital assets such as ETH, WBTC, and stablecoins like USDC and USDT.
Why Aave? The choice of a market leader
According to a statement made on the social network X (formerly Twitter), the WLF team chose Aave due to its “cutting-edge security and reliable track record.” The protocol, often considered a benchmark in the DeFi sector, stands out for its decentralized and secure lending system, which allows users to lend their digital assets while generating interest from other users’ borrowing.
Aave also has a reserve factor, a system that, in this case, will allow WLF to allocate 20% of generated interest to the Aave ecosystem reserve. This will be done through a trustless smart contract, ensuring transparency and security for all parties involved.
A first step: integration with future ambitions
The launch of World Liberty Financial on Aave V3 will be just the first step in a larger strategy. If the integration on the Ethereum mainnet proves successful, the project plans to expand towards Scroll, an Ethereum Layer 2 solution. This expansion could improve transaction efficiency, reduce costs, and attract a wider and more diverse user base.
Marc Zeller, founder of the Aave Chain initiative, expressed his enthusiasm for this collaboration. Although he clarified that he has no direct contact with former President Trump, Zeller and his team have offered their assistance to help WLF master the use of Aave technology. He stated that he is “delighted to see WLF’s unique integration of Aave’s technology stack.”
The launch of WLFI tokens and the importance of accredited investors
In a livestream held on September 16, the WLF team confirmed that they would launch a non-transferable governance token called WLFI, which will only be accessible to accredited investors. This token will be strategically distributed: 63% will be sold to the public, 17% will be reserved to reward users, and 20% will go towards team compensation. This model aims to strike a balance between public funding, user retention, and the remuneration of the management team.
However, the World Liberty Financial project is not universally embraced in the sector. Despite the overall positive reception the former President Trump receives in the cryptocurrency world, WLF has sparked mixed reactions. Some observers have expressed doubts about the political motivations behind this initiative, while others believe that the project could attract a new audience to DeFi, an area still largely unknown to the American general public. Although over $57 billion is staked in major DeFi protocols, including Ethereum, Solana, and Tron, DeFi remains a sector with few users compared to its potential.
A protocol that strengthens Aave’s position in the DeFi market
The launch of World Liberty Financial could also be beneficial for Aave by enhancing its status as a leader in the digital asset lending and borrowing market. WLF has stated that its launch will help maintain Aave’s dominant position on Ethereum by introducing assets that may not be compatible with current markets.
However, before moving forward, the proposal must undergo a vote by Aave token holders. If this initial vote, known as a “temp check,” is approved, the Aave community will have the opportunity to submit feedback during a comment phase, which will be followed by a testing period before the official mainnet launch.
