On Thursday, teams from World Fiberty Financial (WLF), the crypto project powered by the Trump family, posted on the Aave governance forum to propose a collaboration. What would be the applications of such a partnership?
World Liberty Financial (WLF) could land on Aave
While the World Liberty Financial (WLF) crypto project supported by the Trump family is gaining more and more attention, its teams have published a proposal on the governance forum of the decentralized finance (DeFi) protocol Aave.
If this proposal were to be accepted, an instance of World Liberty Financial would then be created on Aave V3 on the Ethereum (ETH) blockchain. Regarding the first assets to be supported, these would be USDC, USDT, ETH, as well as wBTC.
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As a reward for this partnership, Aave's decentralized autonomous organization (DAO) would be paid 20% of the protocol fees collected on this instance and 7% of the total supply of the future WLF token. Among this allocation, WLFs may be used for marketing purposes, governance operations or for incentives on the protocol through liquidity mining.
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Shared reactions
For now, reactions from governance are generally positiveas evidenced in particular by Marc Zeller, the founder of the Aave Chan Initiative (ACI):
ACI fully supports this initiative and welcomes the alignment between the WLF and the Aave ecosystem. As service providers for the Aave DAO, we are committed to providing full support to Skyward and will contribute in every way possible to ensure its success.
However, some reactions are more mixed, which is for example the case of this investor, who believes that this association would present “a significant risk for the Aave protocol for minimal gain»:
I will encourage WLF to create its own fork/protocol independently and gain the trust of the crypto community before asking the largest and most trusted protocol in DeFi to take the risk of collaborating with an entity run by people with questionable backgrounds, including several convicted felons.
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For its part, the AAVE token does not particularly seem to have reacted to this announcement. At the time of writing, it is trading at $141.7, up slightly by 0.31% over 24 hours.
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Source: Aave
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