former president Donald Trump's longstanding rumors decentralized finance The (DeFi) project is slowly coming together, with more details revealed today.
world liberty financial It submitted its proposal to the Governance Forum on Wednesday. Ethereum DeFi platform Abe— Trump and his business partners plan to build a cryptocurrency offering based on it.
This project proposes to start the service as an instance on Aave. This means that popular DeFi protocols provide the infrastructure that enables World Liberty to function. In return, AaveDAO, the group of Aave token holders that controls the platform, will receive an effective 20% of all protocol fees generated by World Liberty and 7% of the supply of WLFI, the project's governance token. That's it.
WLFI was initially described as “non-transferable,” but Wednesday's proposal says users would receive tokens as a reward for participating in World Liberty. liquidity pool. It is unclear how this project could allow AaveDAO to store and distribute WLFI tokens to users if the tokens are in fact non-transferable. A representative for World Liberty Financial did not immediately respond. decryptionThis is a comment request from .
Members of the AaveDAO community will now discuss this proposal and whether they should vote to allow Trump and his associates to build DeFi services based on Aave's decentralized lending protocol. WLFI holders must also approve a separate plan.
The proposal also reveals that World Liberty will initially allow deposits in Ethereum (ETH), Wrapped Bitcoin (WBTC), and popular stablecoins USDC and USDT. The project initially aims to provide stablecoin liquidity for ETH and WBTC, and is especially designed for first-time DeFi users (perhaps familiar with the Trump brand but less familiar with the intricacies of liquidity pools and digital asset borrowing). The company claims to focus on attracting people (people who are not familiar with it). .
Last month, President Trump, his sons Eric Jr. and Don Jr., and several colleagues, including fellow New York billionaire Steve Witkoff, announced The freedom of the world is provides cryptocurrency lending and borrowing services on the Ethereum blockchain network, similar to the vast existing applications of DeFi such as Aave.
Both then and now, the World Liberty team has been keen to market the project as a more “user-friendly” alternative to existing DeFi options like Aave, which are difficult to operate without significant technical know-how. Ta. In their pitch to AaveDAO members, World Liberty's team promised that their project had the potential to “bring significant new users and new liquidity to Aave.”
There are still many unknowns about World Liberty, how and where it will work. In late September, the project published a whitelist that allows selected Americans (accredited investors only) to purchase WLFI tokens. The token is offered under US Securities and Exchange Commission (SEC) rules that allow only particularly wealthy or savvy investors to participate as a way to reduce risk.
However, questions remained about the World Liberty Aave instance itself, whether it would receive approval and eventually launch. Formerly World Liberty Team said The intention was to make the platform available to all Americans “in the future.”
As confirmed by the project team, decryptionHowever, the proposed World Liberty Aave instance would be accessible to all Aave users, meaning it could actually be used by Americans.
It's not a risk-free plan. Other similar US-based DeFi protocols such as Uniswap include I received a notification In recent months, the SEC has announced that it plans to prosecute the company for allegedly offering unregistered securities illegally.
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