Aave DAO World is considering a proposal from Liberty Financial. The proposal provides the DAO with a share of WLF revenue. Aave has $165 million in reserves.
Aave is already a DeFi behemoth, with $165 million in its DAO's treasury.
However, thanks to Donald Trump's polarizing crypto project World Liberty Financial, the crypto lending protocol's coffers may grow even higher.
The Ave community was skeptical when it was announced that World Liberty Financial would be built on top of the Ave protocol, according to Mark Zeller, founder of the Ave Chan Initiative, a representative platform on the Ave DAO.
That changed after the Trump Project proposed yesterday that Aave DAO, the crypto collective that runs the Aave protocol, would give 7% of its WLFI token and 20% of future fees generated by WLF.
At WLF's planned $1.8 billion valuation, the portion of tokens given to Aave could be worth around $126 million.
“What we've seen is that people welcome their decision,” Zeller said News.
This move may have reassured many Aave DAO members about World Liberty Financial's intentions.
Trump's sharing of revenue with Project Aave DAO and giving tokens to it aligns the two protocols, while also indicating that the politician's foray into DeFi is not just focused on making money for its owners.
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Many in the DeFi community are concerned that World Liberty could be a way for the Trump family and protocol creators to cash in on DeFi.
A Trump-affiliated project described the handouts in a “temporary inspection.” proposal In the Aave DAO Governance Forum. Instead, Aave DAO World will help Liberty Financial integrate its latest protocol version into Ethereum.
Temporary inspections, or temperature inspection proposals, are the primary proposals for DAO members to consider. Approved interim inspection proposals are voted on before implementation.
What is the profit?
Instead of launching its own bespoke protocol, World Liberty is piggybacking on Ave, a massively defiant lending protocol. $12 billion Deposits.
The proposed integration, if approved, would allow users to deposit USDC and USDT stablecoins along with Ether and Wrapped Bitcoin into the protocol.
These assets can be used as collateral to borrow against other assets.
The transaction fees Ave receives from Trump's project add about $67 million to the protocol's annual revenue.
According to the Aave DAO proposal, 7% of World Liberty's native WLFI token will be held to vote on governance decisions.
Previous code tests revealed that World Liberty Finance will have a token supply of 100 billion.
Project insiders expect to own 70% of the tokens, with the remaining 30 billion to be sold at a planned valuation of $1.8 billion.
Osato Awan-Nomayo Our Nigeria based DeFi representative. He covers DeFi and technology. To share tips or information about articles, please contact him here [email protected].
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