Former President Donald Trump’s World Liberty Financial (WLF) DeFi project has submitted a proposal to Aave DAO that could potentially add over $100 million in revenue to the lending protocol’s treasury. The proposal aims to deploy an Aave V3 instance offering liquidity for various digital assets, including Ethereum, Wrapped Bitcoin, and stablecoins. WLF plans to onboard assets that may not be compatible with the main market on Ethereum Mainnet, leveraging its ties to traditional finance and institutional investment to attract new users to Aave.
If approved, Aave DAO would receive 20% of protocol fees and approximately 7% of WLF’s governance token supply, potentially doubling Aave’s treasury overnight, according to Marc Zeller, founder of the Aave Chan Initiative. This collaboration is expected to be highly profitable for Aave, as the Trump-linked DeFi project is valued at $1.8 billion. Aave currently holds around $60 million in assets in its treasury, making the potential revenue from WLF’s proposal significant for the lending protocol.
Despite controversies surrounding the Trump-affiliated project, World Liberty Financial emphasizes its goal of creating a permissionless, peer-to-peer digital asset system. WLFi protocol aims to offer a user-friendly experience with features like one-click social logins and wallet creation to attract a broad user base. The project also intends to run separate instances on Ethereum and Scroll, with Ethereum targeting large institutional investors and Scroll providing gas-free transactions through its ZK-rollup technology, appealing to retailers.
As the largest lending protocol in the DeFi industry with over $20 billion worth of assets locked across 13 chains, Aave stands to benefit significantly from the potential integration with World Liberty Financial. Analyzing the potential gains from this collaboration, experts believe that Aave DAO’s share of WLF’s governance token could be valued at $105 million, making it a lucrative opportunity for the lending protocol. Zapper data indicates that Aave currently holds $60 million in assets across ten addresses, highlighting the significance of the revenue that could be generated through the proposed partnership with WLF.
In conclusion, the partnership between Aave DAO and World Liberty Financial’s DeFi project has the potential to bring substantial revenue to the lending protocol’s treasury. The revenue-sharing model proposed by WLF could significantly boost Aave’s liquidity and user base, positioning it as a key player in the DeFi industry. Despite the controversies surrounding the Trump-affiliated project, World Liberty Financial remains focused on its vision of creating a user-friendly, permissionless digital asset system that caters to a broad range of users. With Aave’s strong position in the DeFi market and WLF’s innovative approach to asset onboarding, this collaboration has the potential to be a game-changer in the decentralized finance space.
