World Liberty Financial, the crypto project of former President Donald Trump, wants to work with Aave, a decentralized finance (DeFi) tool. A governance plan sent on October 9 says that the project wants to use Aave’s technology on the Ethereum network to build its services.
According to the plan, World Liberty Financial would run as an Aave v3 instance on Ethereum’s mainnet and use Aave’s protocol to run its core. As an incentive for the relationship, the project is giving 20% of the fees it makes and 7% of its own governance tokens, called WLFI, to AaveDAO, the autonomous group of Aave tokenholders that is in charge of running the platform.
If this partnership goes through, it should make it easier for people to buy and sell important cryptocurrencies like Ethereum (ETH), wrapped bitcoin (WBTC), and stablecoins that are stored on the site. Users will be able to transfer Ether, WBTC, USD Coin (USDC), and Tether (USDT) at first.
World Liberty Financial wants to use the same reserve factor method that AAVE does to make sure that their liquidity assets are managed well. World Liberty Financial will also use a trustless smart contract to control how the money from the two sites is split.
Before the plan can move forward, AaveDAO members must talk about it and vote on it. The people who own WLFI tokens from World Liberty Financial will also have to agree to the partnership.
World Liberty Financial said on October 10 on social media that the planned integration with Aave “aligns perfectly” with its goal of making DeFi easier for users to access. The project wants to offer its services on the Ethereum layer 2 blockchain, Scroll, if it succeeds.
The project, which focuses on promoting stablecoins that are tied to the US dollar, has slowly been revealing more about World Liberty Financial’s platform. Trump has made vague posts about the project in the past, but he hasn’t given full information.
In a recent livestream, Trump was supposed to talk about World Liberty Financial in more detail. However, the conversation was short and mostly about other things, leaving the details of the project mostly ignored. Later, the project’s team talked about its WLFI coin and how it could be used in digital wallets, credit systems, and crypto investments.
A white paper that was leaked says that World Liberty Financial wants to let users put money in a digital wallet, give and borrow money, and use its tokens to trade in different assets. The technology will be open source, and some of the people working on it have built DeFi systems before.
