Former President Donald Trump‘s World Liberty Monetary (WLF) DeFi challenge might 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 belongings. It added:
“WLF foresees onboarding belongings that might not be suitable with the principle market on Ethereum Mainnet, leveraging its ties to conventional finance and institutional funding.”
WLF anticipates that this transfer will entice new customers to Aave, boosting each its liquidity and person base.
Aave’s potential features
If authorized, 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 could possibly be extremely worthwhile for Aave because the Trump-linked DeFi challenge is estimated to be valued at $1.8 billion.
Marc Zeller, founding father of the Aave Chan Initiative, known 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 line with Zapper knowledge, Aave’s treasury holds round $60 million in belongings throughout ten addresses.
Knowledge from DeFillama exhibits Aave is the most important lending protocol within the DeFi business, with over $20 billion price of belongings locked throughout 13 chains.
World Liberty Monetary’s imaginative and prescient
Regardless of current controversies surrounding the Trump-affiliated challenge, World Liberty Monetary states that its purpose is to create a permissionless, peer-to-peer digital asset system.
The group 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 situations on Ethereum and Scroll. Whereas Ethereum’s liquidity targets giant institutional buyers, Scroll, a ZK-rollup with paymaster providers, permits for gas-free transactions that might show engaging for retailers.