World Liberty Financial Proposes Aave V3 Launch

World Liberty Financial, a DeFi project linked to the Trump family, has announced plans to launch using Aave V3 on the Ethereum mainnet.

> “We chose @aave because it’s the best-in-class lending & borrowing protocol with top-notch security practices and a strong track record. Partnering with Aave enables us to deliver a reliable platform our users need,” the team wrote on X.

According to its governance proposal on the Aave forum, WLF’s Aave V3 instance will support borrowing and lending of ETH, WBTC, USDC, and USDT, with depositors earning interest from lenders' fees. The team anticipates onboarding assets incompatible with the main Ethereum market, leveraging connections to traditional finance.

World Liberty Financial will implement Aave’s reserve factor system to allocate 20% of the protocol's interest to the Aave Ecosystem Reserve using a trustless smart contract.

Marc Zeller, founder of the Aave Chain Initiative, mentioned that he has supported the WLF team in utilizing the Aave tech stack but does not have direct contact with former President Trump. “We’re thrilled to witness the unique integration of the Aave Stack by the WLF team,” he added.

If successful, WLF plans to expand onto the Scroll Ethereum Layer 2. During a Sept. 16 livestream, the project confirmed it will sell a non-transferable governance token to accredited investors, distributing 63% to the public, 17% for user rewards, and 20% for team compensation.

While Trump’s involvement has raised eyebrows, others believe this project could attract attention to the DeFi sector, which remains largely unknown to many Americans despite significant staked amounts in major chains.

“World Liberty Financial has the potential to introduce new audiences to the decentralized finance ecosystem,” Zeller stated.

Aave user EzR3aL expressed curiosity about the project's evolution and potential new user base, suggesting that the revenue share and token distribution signal the importance of a good relationship for WLF.

Aave token holders must first approve a “temp check” that will open community feedback and ultimately lead to a testing period and mainnet launch. The WLF team noted that the protocol could help maintain Aave’s leadership in digital asset borrowing and supply.

Editor's note (Oct. 9, 23:05 UTC): Adds comment from Aave Chain Initiative founder Marc Zeller.