Trump-linked DeFi venture could double Aave’s treasury overnight with $100M boost Trump-linked DeFi venture could double Aave’s treasury overnight with $100M boost
Trump's World Liberty Financial said its goal is to create a permissionless, peer-to-peer digital asset system.
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Updated: Oct. 11, 2024 at 11:53 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Former President Donald Trump‘s World Liberty Financial (WLF) DeFi project may add over $100 million in revenue 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 instance. This would offer liquidity for Ethereum, Wrapped Bitcoin, stablecoins, and potentially other digital assets. It added:
“WLF foresees onboarding assets that may not be compatible with the main market on Ethereum Mainnet, leveraging its ties to traditional finance and institutional investment.”
WLF anticipates that this move will attract new users to Aave, boosting both its liquidity and user base.
Aave’s potential gains
If approved, WLF’s proposal outlines a revenue-sharing model. Aave DAO would receive 20% of protocol fees and approximately 7% of WLF’s governance token (WLFI) supply.
Analysts note that this collaboration could be highly profitable for Aave as the Trump-linked DeFi project is estimated to be valued at $1.8 billion.
Marc Zeller, founder of the Aave Chan Initiative, called the potential integration “the deal of the decade” because it could double Aave’s treasury overnight. He noted:
“This valuation would mean the Aave DAO share of WLFI would be valued at $105 million (7% of total supply).”
According to Zapper data, Aave’s treasury holds around $60 million in assets across ten addresses.
Data from DeFillama shows Aave is the largest lending protocol in the DeFi industry, with over $20 billion worth of assets locked across 13 chains.
World Liberty Financial’s vision
Despite recent controversies surrounding the Trump-affiliated project, World Liberty Financial states that its goal is to create a permissionless, peer-to-peer digital asset system.
The team has outlined plans for the WLFi protocol to offer a user-friendly experience, including one-click social logins and wallet creation, designed to attract a broad user base.
WLF also intends to run separate instances on Ethereum and Scroll. While Ethereum’s liquidity targets large institutional investors, Scroll, a ZK-rollup with paymaster services, allows for gas-free transactions that could prove attractive for retailers.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Aave is an open source and non-custodial protocol enabling the creation of money markets.
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A businessman, politician, and media personality, Donald John Trump served as the 45th president of the United States from 2017 to 2021.
