Trump’s crypto project, World Liberty Financial, has submitted a governance proposal to Aave, confirming that it would be built on the decentralized finance (DeFi) platform.
World Liberty Financial said it wants to launch its service as an Aave v3 instance on the Ethereum mainnet where the protocol acts as the back-end of the platform.
It offered AaveDAO, a group of Aave (GHOST) token holders, 20% of the fees it generates and 7% of the supply of the platform’s governance token, WLFI.
The Donald Trump-backed project stated that running as an Aave instance will provide liquidity for its stablecoins, Ether (ETH), and wrapped Bitcoin (WBTC) that it plans to host as Aave’s user base grows.
The proposal revealed that World Liberty Financial would initially allow deposits in Ether and WBTC, along with stablecoins USD Coin (USDC) and Tether (USDT).
The project has also proposed using the same reserve factor system as the main Aave instance and a trustless smart contract to set the income distribution.
AaveDAO members can now discuss the proposal before voting on it. WLFI token holders operating the World Liberty Financial platform will also have to approve the proposal separately.
After World Liberty Financial said the proposal is a perfect fit to create an easily accessible DeFi user experience, it plans to expand to the Ethereum layer 2 blockchain Scroll.
Full details about the platform have been slowly revealed. Trump has made some of them cryptic before to inform about World Liberty Financial, and the project has suggested it wants to spread the use of stablecoins pegged to the US dollar.
In a livestream last month, Trump was expected to share the full details of his family’s crypto project, led by sons Eric and Donald Trump Jr.
However, he hardly talked about crypto in the 45-minute conversation and made no mention of the project. The World Liberty Financial team later revealed details about its WLFI token.
A leaked white paper states that the project would allow users to store money in a digital wallet, offer a credit account system, borrow or lend cash to others, and use tokens to invest in assets such as crypto.
It also said the platform would be open source and provide a similar lending and borrowing service to Dough Finance, with four people who helped build the DeFi protocol on the team. Dough Finance lost $1.8 million in July after reporting losses of $1.8 million due to a flash loan attack.
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