Trump Crypto Project Submits Proposal to Ethereum DeFi Giant Aave

Former president The long-standing Donald Trump rumor decentralized finance (DeFi) is slowly coming together, and more details are being revealed today.

Liberty Global Financial submitted a proposal to the governance forum of Ethereum DeFi Platform Aave– on which Trump and his business partners intend to build their crypto offering.

The project proposed launching its services as an instance on Aave, meaning the popular DeFi protocol would provide the infrastructure for World Liberty to operate. In return, AaveDAO – the group of Aave token holders who govern the platform – would receive 20% of all protocol fees generated by World Liberty and 7% of the supply of WLFI, the project’s governance token.

While WLFI was initially described as “non-transferable,” Wednesday’s proposal indicates that users will receive the token as a reward for participating in World Liberty. liquidity swimming pools. It is unclear how the project will allow AaveDAO to take custody of WLFI tokens and then distribute them to users if the tokens are in fact not transferable. Representatives for World Liberty Financial did not immediately respond to Decryptrequest for comment.

Members of the AaveDAO community will now discuss the proposal and whether they should vote to allow Trump and his associates to build their DeFi offering on Aave’s decentralized lending protocol. WLFI holders would also have to separately approve the plan.

The proposal also revealed that World Liberty would initially allow deposits in Ethereum (ETH), Wrapped Bitcoin (WBTC), and the popular stablecoins USDC and USDT. The project says it will first aim to provide stable liquidity for ETH and WBTC, with a particular focus on attracting new DeFi users – presumably people familiar with the Trump brand, but less familiar with the intricacies of liquidity pools and digital asset borrowing. .

Last month, Trump and several associates, including his sons, Eric and Don Jr., and fellow New York billionaire Steve Witkoff, announcement World freedom, which will offer cryptocurrency borrowing and lending services on the Ethereum blockchain network, much like the wide range of existing applications in DeFi, such as Aave.

Then as now, the World Liberty team redoubled its efforts to present the project as a more “user-friendly” alternative to existing DeFi options like Aave, which can be difficult to navigate without technical know-how. considerable. In its speech to AaveDAO members, the World Liberty team promised that its project could “bring a significant number of new users and new liquidity to Aave.”

Much remains unknown about global freedom, namely how and where it will work. In late September, the project opened whitelists to allow certain Americans (accredited investors only) to purchase WLFI tokens. The tokens will be offered pursuant to a U.S. Securities and Exchange Commission (SEC) rule that allows only particularly wealthy or sophisticated investors to participate in order to mitigate risk.

Questions remained, however, about the World Liberty Aave instance itself: whether it should be approved and ultimately launched. Previously, the World Liberty team said it aimed for all Americans to be able to use the platform “in the future.”

The project team confirmed Decrypthowever, that the proposed World Liberty Aave instance would be accessible to all Aave users, meaning Americans could actually use it.

This is not a plan without risks. Other similar US-based DeFi protocols, like Uniswap, have received a notice In recent months, the SEC has been considering taking them to court for allegedly offering illegally unregistered securities.