Trump Crypto Submits Aave Proposal

Donald Trump's World Liberty Financial DeFi Project Takes Shape

Former President Donald Trump's long-rumored Decentralized finance (DeFi) project is slowly coming together, with more details coming to light.

World Liberty Financial Proposal on Aave

World Liberty Financial submitted a proposal on Wednesday to the Governance forum of Ethereum DeFi platform Aave—upon which Trump and his business partners intend to build their Crypto offering.

• The project has proposed to launch its services as an instance on Aave, allowing World Liberty to function with the infrastructure provided by AaveDAO.
• AaveDAO 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-transferrable," the latest proposal suggests that users will receive the token as a reward for participating in World Liberty liquidity pools.

AaveDAO Community Decision

AaveDAO community members will discuss the proposal and vote on whether to allow Trump and his associates to build their DeFi offering on Aave's decentralized lending protocol. Holders of WLFI would also separately approve the plan.

Initial Deposits and Focus

World Liberty plans to initially allow deposits in Ethereum (ETH), Wrapped Bitcoin (WBTC), USDC, and USDT. The project aims to provide stablecoin liquidity for ETH and WBTC, focusing on attracting first-time DeFi users.

User-Friendly Pitch

The World Liberty team pitches the project as a more "user-friendly" alternative to existing DeFi options like Aave, targeting new users familiar with the Trump brand but less familiar with DeFi intricacies.

World Liberty's Accessibility and Risks

The project's team affirmed that the proposed World Liberty Aave instance would be accessible to all Aave users, including Americans. However, similar U.S.-based DeFi protocols like Uniswap have faced SEC scrutiny for allegedly offering unregistered securities.