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World Liberty Financial (WLF), a DeFi project backed by the Trump family and associates, has formally requested to be deployed on Aave V3. The project will be based on the Ethereum mainnet, as revealed in a statement made on Wednesday.
According to the WLF team, Aave was selected because of its strong security protocols and the team’s experience in the DeFi space. The partnership allows WLF to offer its users a reliable and secure environment for borrowing and lending cryptocurrencies, such as ETH, WBTC, USDC and USDT.
🧵 1/5 We’re excited to announce that World Liberty Financial has officially posted our governance proposal to Aave’s forum to launch an Aave V3 instance on Ethereum Mainnet! 📜 Check it out here: https://t.co/CQRrBqDIVv
— WLFI (@worldlibertyfi) October 9, 2024
In the official proposal, the team mentioned that WLF intends to introduce assets that can be incompatible with Ethereum market. WLF stated, “WLF foresees onboarding assets that may not be compatible… leveraging its ties to traditional finance and institutional investment.”
As part of the integration with Aave, WLF plans to use Aave’s reserve factor model to contribute 20% of the interest earned by the Aave protocol to the Aave Ecosystem Reserve. The project will also launch a non-fungible token known as WLFI to the accredited investors in the project. As for the token distribution, 63% of the tokens will be available for the public, 17% of tokens will be assigned to user rewards, and 20% for the team compesation.
AaveDAO and WLFI token holders prepare for crucial votes
The proposal will be submitted to the AaveDAO community, and members will be able to vote on it in the next few days. The WLFI token holders would also have to approve the plan before it can be put into the market.
In related news, the Aave community has started a temperature check vote on a proposal to integrate Ripple’s RLUSD stablecoin into Aave V3 on Ethereum, as reported by Hawk Insight. RLUSD is the new stablecoin that is backed by Ripple and is expected to be approved by the New York Department of Financial Services.