World Liberty Financial: Trump Family’s DeFi Project Linked to Hacked Protocol
The DeFi project associated with the Trump family, World Liberty Financial, has raised concerns about its security and originality due to troubling similarities in code and involved members. The project, announced in August 2024, is based on the Ethereum blockchain and features a decentralized lending system with a unique non-transferable governance token.
The direct involvement of Donald Trump and DeFi personalities has sparked attention and controversies, particularly following hacks on close associates’ accounts to promote fraudulent tokens.
According to recent information, the DeFi platform linked to the Trump family, World Liberty Financial, is reportedly connected to Dough Finance, a DeFi protocol that was recently hacked. While details remain unclear, some sources suggest that the Trump family’s project may have reused parts of Dough Finance’s code, raising questions about its originality and security.
The Genesis of the World Liberty Financial Project
Announced in August 2024 as “The DeFiant Ones,” World Liberty Financial gained attention due to the direct involvement of Donald Trump and his sons, Donald Trump Jr., Eric Trump, and even Barron Trump. Presented as a platform aiming to democratize access to cryptocurrencies and DeFi, the project is built on the Ethereum blockchain and the Aave lending and borrowing protocol.
One of the project’s central points is a decentralized credit account system, allowing users to borrow and lend digital assets without traditional intermediaries. This model is directly inspired by DeFi, where interactions are automated through smart contracts, eliminating the need for a traditional banking institution.
Unexpected Links with Dough Finance
According to a report by CoinDesk, the project’s initial code, which was briefly available on GitHub before being removed, shows troubling similarities with Dough Finance, another DeFi protocol. Dough Finance gained attention due to a hack in July 2024, where nearly $2 million was lost in a flash loan attack.
A Team Filled with Familiar Faces
Besides the Trump family members, the World Liberty Financial project features well-known names in the decentralized finance ecosystem. Zachary Folkman and Chase Herro, co-founders of Dough Finance, hold key positions within World Liberty Financial as Chief Operations Officer and Head of Data and Strategies, respectively. Other notable individuals, such as Octavian Lojnita, leader of smart contracts, and Boga, a pseudonymous developer known as 0xboga, are also involved in the project.
The direct involvement of the team behind Dough Finance, a protocol that experienced a significant hack, raises concerns. While World Liberty Financial appears to have ambitions for enhanced security, including restrictions on WLFI token transferability, adopting proven practices will be crucial to avoiding past mistakes.
A Unique Governance System and DeFi Ambitions
The World Liberty Financial white paper mentions the creation of a non-transferable governance token, WLFI, which would allow holders to participate in project management. However, the token’s non-transferability makes speculation challenging, which is unusual in the cryptocurrency world where token liquidity and tradability are often seen as key governance elements.
One of the project’s highlights is its decentralized governance system. Users, through their WLFI tokens, will be able to propose and vote on protocol changes, such as adding new lending markets or integrating new blockchains. This approach is similar to other DeFi platforms, where governance is delegated to token holders, but the uniqueness lies in the non-transferable nature of the token, an apparent attempt to limit external manipulations and excessive speculation.
Between Controversy and Support
Donald Trump’s involvement in this project has sparked controversy. Although he initially expressed reservations about cryptocurrencies, Trump now seems to embrace the technology and its opportunities. He has launched multiple series of NFTs before turning to DeFi, a rapidly expanding sector still largely unfamiliar to the general public.
The members of the Trump family have warned about potential scams associated with their name, stating that official project announcements would come directly from their personal accounts. However, two announcements for a supposedly connected token to the World Liberty Financial project emerged on close associates’ accounts, leading to significant losses.
