World Liberty Financial (WLF), a DeFi project connected to the Trump family, has formally proposed to launch on Aave V3 on the Ethereum mainnet. In an announcement made on Wednesday, the team stated, “We chose @aave because it’s the best-in-class lending & borrowing protocol with top-notch security practices.”
The WLF proposal details that users will be able to borrow or lend ETH, WBTC, USDC, and USDT stablecoins on the Aave platform. Depositers will earn interest from the fees paid by lenders, similar to Aave’s existing model.
World Liberty Financial plans to onboard assets that may not be compatible with the main Ethereum market, leveraging its connections to traditional finance and institutional investors. Additionally, WLF will allocate 20% of the protocol's interest to the Aave Ecosystem Reserve using a trustless smart contract.
If successful, WLF aims to expand onto the Scroll Ethereum Layer 2. During a livestream on September 16, the project confirmed it will sell a non-transferable governance token to accredited investors, with 63% allocated for public sale, 17% for user rewards, and 20% for team compensation.
While the involvement of former President Donald Trump has drawn mixed reactions, many believe that WLF can raise awareness for the DeFi sector among the American public. Despite over $57 billion staked across various DeFi protocols, user engagement remains low.
Aave token holders will first need to vote on a “temp check” to facilitate community feedback, leading to a testing phase and eventual mainnet launch. The WLF team emphasized that this initiative could help maintain Aave’s leadership in digital asset borrowing and supply.
