Former President Donald Trump‘s World Liberty Monetary (WLF) DeFi mission could add over $100 million in income to Aave DAO’s treasury if the lending protocol approves a pending proposal.
On Oct. 10, WLF submitted a plan to deploy an Aave V3 occasion. This may supply liquidity for Ethereum, Wrapped Bitcoin, stablecoins, and doubtlessly different digital property. It added:
“WLF foresees onboarding property that might not be appropriate with the primary market on Ethereum Mainnet, leveraging its ties to conventional finance and institutional funding.”
WLF anticipates that this transfer will appeal to new customers to Aave, boosting each its liquidity and person base.
Aave’s potential good points
If accredited, WLF’s proposal outlines a revenue-sharing mannequin. Aave DAO would obtain 20% of protocol charges and roughly 7% of WLF’s governance token (WLFI) provide.
Analysts be aware that this collaboration may very well be extremely worthwhile for Aave because the Trump-linked DeFi mission is estimated to be valued at $1.8 billion.
Marc Zeller, founding father of the Aave Chan Initiative, referred to as the potential integration “the deal of the last decade” as a result of it may double Aave’s treasury in a single day. He famous:
“This valuation would imply the Aave DAO share of WLFI could be valued at $105 million (7% of complete provide).”
In response to Zapper knowledge, Aave’s treasury holds round $60 million in property throughout ten addresses.
Knowledge from DeFillama reveals Aave is the most important lending protocol within the DeFi business, with over $20 billion value of property locked throughout 13 chains.
World Liberty Monetary’s imaginative and prescient
Regardless of latest controversies surrounding the Trump-affiliated mission, World Liberty Monetary states that its aim is to create a permissionless, peer-to-peer digital asset system.
The staff has outlined plans for the WLFi protocol to supply a user-friendly expertise, together with one-click social logins and pockets creation, designed to draw a broad person base.
WLF additionally intends to run separate cases on Ethereum and Scroll. Whereas Ethereum’s liquidity targets massive institutional traders, Scroll, a ZK-rollup with paymaster providers, permits for gas-free transactions that might show engaging for retailers.
