World Liberty Financial’s Impact on Aave DAO Revenue
The DeFi initiative launched by former President Donald Trump, known as World Liberty Financial (WLF), has the potential to add over $100 million to the treasury of the Aave DAO, contingent on the approval of a forthcoming proposal by the lending protocol.
Proposal Details
On October 10, WLF proposed the deployment of an Aave V3 instance designed to provide liquidity for various assets, including Ethereum, Wrapped Bitcoin, and stablecoins. The proposal emphasizes:
“WLF anticipates onboarding assets that may not align with the main Ethereum market, capitalizing on its connections to traditional finance and institutional funding.”
This strategy aims to draw new participants to Aave, simultaneously enhancing its liquidity and expanding its user base.
Potential Benefits for Aave
If the proposal is ratified, WLF’s revenue-sharing model would allocate 20% of the protocol fees to the Aave DAO and grant it approximately 7% of the governance token (WLFI) supply. Analysts suggest that this partnership could prove immensely profitable for Aave, as WLF is projected to be valued at around $1.8 billion.
Marc Zeller, founder of the Aave Chan Initiative, heralded the potential partnership as “the deal of the decade,” predicting that it could double the treasury of Aave overnight. He further elaborated:
“This valuation implies that the Aave DAO’s share of WLFI would be worth $105 million—representing 7% of the overall supply.”
Current data shows that Aave’s treasury comprises approximately $60 million in assets distributed across ten addresses, as per Zapper. Furthermore, DeFillama data indicates that Aave is currently the largest lending protocol in the DeFi sector, with over $20 billion in assets locked across 13 different networks.
Visions of World Liberty Financial
In spite of some controversies surrounding the Trump-backed initiative, World Liberty Financial aims to establish an open, peer-to-peer digital asset system.
The project has detailed plans for the WLFI protocol, focusing on creating a user-friendly platform that incorporates seamless social logins and wallet creation aimed at attracting a diverse array of users.
In addition, WLF plans to operate on both Ethereum and Scroll networks. While targeting large institutional investors on Ethereum, Scroll—a ZK-rollup with paymaster capabilities—will facilitate gas-free transactions, appealing to retail users.