Donald Trump Crypto Project Suggests Aave Integration in New Governance Proposal

• World Liberty Financial proposed to integrate with Aave, using its v3 protocol for enhanced liquidity on Ethereum mainnet.
• The platform plans to offer AaveDAO 20% of its fees and 7% of its WLFI governance tokens in exchange for support.
• If successful, World Liberty Financial intends to expand to Ethereum layer 2, increasing scalability and DeFi services.

World Liberty Financial, a crypto project backed by former U.S. President Donald Trump, has made a significant move in the decentralized finance (DeFi) space. The platform submitted a governance proposal to Aave, a leading DeFi protocol, aiming to operate as an instance on Aave v3 on the Ethereum mainnet. The proposal outlines plans to use Aave as the platform’s backend, allowing it to expand liquidity options and grow Aave’s user base.

According to the proposal, World Liberty Financial will initially support deposits in Ether, Wrapped Bitcoin (WBTC), and stablecoins such as USD Coin and Tether. The project aims to improve liquidity for these assets, benefiting both platforms. 

Additionally, the crypto project has proposed sharing 20% of the fees it generates with AaveDAO, which governs the Aave protocol, along with 7% of its native governance token, WLFI.

Proposal’s Revenue Sharing and Liquidity Boost Plans

Notably, the revenue-sharing element in the proposal is seen as a critical factor in encouraging collaboration between Aave and World Liberty Financial. By offering AaveDAO a portion of its revenue, World Liberty Financial seeks to align its goals with the interests of the Aave community. This potential partnership could significantly increase liquidity for both Ether and WBTC, two essential assets in the DeFi ecosystem.

Furthermore, the proposal mentions the use of a trustless smart contract to facilitate the revenue split. The platform will also adopt the same reserve factor system as Aave’s main instance, ensuring consistency in the management of user funds. These efforts are part of World Liberty Financial’s broader strategy to enhance the accessibility and usability of DeFi for a wider audience.

Expansion to Ethereum Layer 2 on the Horizon

Consequently, if the integration with Aave proves successful, World Liberty Financial plans to expand its services to Ethereum’s layer 2 blockchain, Scroll. This move could further increase the scalability and efficiency of its operations. 

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Besides, the platform has expressed confidence that its partnership with Aave will streamline its borrowing and lending services. In addition to expanding liquidity, the proposal outlines plans for a digital wallet, credit account system, and investment opportunities for users.

Moreover, World Liberty Financial has highlighted its commitment to open-source development. The team behind the project includes four contributors who previously worked on Dough Finance, a DeFi platform that suffered a flash loan attack earlier this year. Despite that setback, the team aims to build a more resilient platform with robust security features.