Former President Donald Trump's World Liberty Financial (WLF) DeFi project could add more than $100 million in revenue to Aave DAO's treasury if the lending protocol approves the pending proposal.
On October 10, WLF submitted plans to deploy Aave V3 instances. This provides liquidity for Ethereum, wrapped Bitcoin, stablecoins, and potentially other digital assets. He further added:
“WLF leverages its connections with traditional finance and institutional investors to anticipate the onboarding of assets that are incompatible with the main Ethereum mainnet market.”
WLF expects this move to attract new users to Aave, increasing both its liquidity and user base.
Potential benefits of Aave
If approved, the WLF proposal would outline a revenue-sharing model. Aave DAO receives 20% of protocol fees and approximately 7% of WLF’s governance token (WLFI) supply.
Analysts note that the partnership could be highly profitable for Aave, as Trump-related DeFi projects are estimated to be worth $1.8 billion.
Marc Zeller, founder of the Aave Chan Initiative, called the potential combination a “once-in-a-decade deal” because Aave's finances could double overnight. He pointed out:
“This valuation means that WLFI’s Aave DAO shares are valued at $105 million (7% of total supply).”
Aave's treasury holds approximately $60 million in assets across 10 addresses, according to Zapper data.
Aave is the largest lending protocol in the DeFi industry, with over $20 billion in assets locked across 13 chains, according to DeFillama data.
World Liberty Financial's Vision
Despite recent controversy over Trump-related projects, World Liberty Financial says its goal is to build a permissionless peer-to-peer digital asset system.
The team outlined plans for the WLFi protocol to provide a user-friendly experience designed to attract a broad user base, including one-click social login and wallet creation.
WLF also plans to run separate instances on Ethereum and Scroll. While Ethereum's liquidity is targeted at large institutional investors, Scroll, a ZK rollup with paymaster services, enables gas-free trading and could be attractive to retailers.
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