World Liberty Financial, a decentralized finance (DeFi) initiative linked to Donald Trump, has put forward a governance proposal to Aave, a DeFi lending system on Ethereum.
In the proposal, presented on October 9, the project seeks to launch its own Aave v3 instance.
If approved, AaveDAO would receive 20% of the platform's fees, along with 7% of the total supply of WLFI, the governance token for World Liberty Financial.
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The project has also proposed adopting Aave's reserve factor system for WLFI and utilizing a trustless smart contract to ensure transparent and secure revenue sharing.
World Liberty Financial claims that this integration would increase liquidity for digital assets such as Ether (ETH), Wrapped Bitcoin (WBTC), stablecoins like USD Coin (USDC) and Tether (USDT), while also expanding Aave's user base.
The AaveDAO community is now invited to discuss and vote on the proposal. Approval from World Liberty Financial's WLFI token holders will also be required before the partnership can proceed.
Looking ahead, the project hinted that if the collaboration with Aave succeeds, it plans to expand its operations to Scroll, a Layer-2 scaling solution on Ethereum.
Though the project's details are still emerging, the Trump family has previously made references about it on social media, promising a DeFi platform for crypto lending and borrowing. One of its main objectives appears to be promoting stablecoins pegged to the US dollar, as a way to maintain the US' financial dominance.
Donald Trump was expected to reveal more about the project during an X Spaces live stream on September 16, but he made minimal mention of crypto or the initiative itself.
While signups for the platform began on September 30, access has been restricted to accredited investors due to US Securities and Exchange Commission regulations.
