This proposal suggests deploying a World Liberty Financial Aave v3 instance focused on:
Providing stablecoin liquidity for ETH and WBTC
Growing the Aave protocol user base
This proposal is subject to both AaveDAO governance approval and World Liberty Financial community approval.
Motivation and Value Proposition for Aave Protocol and DAO
World Liberty Financial (“WLF”) is a nascent DeFi protocol that will use Aave v3 to provide liquidity for Ethereum, Wrapped Bitcoin, stablecoins, and potentially other digital assets, as determined by WLF governance. WLF intends to:
Promote DeFi to a wider audience through its marketing efforts
Introduce a new class of users to over-collateralized borrowing and lending
Onboard new users into DeFi by providing seamless user experiences for supplying and borrowing against digital assets
Benefits for Aave
Bring a significant number of new users and new liquidity to Aave
Build brand loyalty and recognition among first-time DeFi users
Help maintain Aave’s position as a market leader in digital asset borrowing and supply
Proposal Details
Initially, WLF’s Aave v3 instance will allow USDC, USDT, ETH, and WBTC deposits
Users can deposit these assets as collateral and borrow the same assets
WLF will utilize the same reserve factor system as the main Aave instance
AaveDAO will receive:
20% of the protocol fees generated by the WLF Aave v3 instance
Approximately 7% of the total supply of $WLFI tokens for:
Participation in WLF Governance procedures
Liquidity mining
Promoting decentralization of the WLF platform
Revenue split will be set up using a trustless smart contract
Future Vision
WLF foresees onboarding assets that may not be compatible with the main market on Ethereum Mainnet, leveraging its ties to traditional finance and institutional investment.
Specification
The proposed WLF Aave v3 instance will implement the following:
Market inclusion: USDC, USDT, ETH, and WBTC
E-Mode: Initially disabled, but may be enabled or disabled through WLF governance
Risk management: Dynamic adjustment of ETH and WBTC supply caps based on stablecoin liquidity
User incentives: $WLF tokens for participating in the WLF Aave v3 pools
Next Steps
If consensus is reached on this [TEMP CHECK], escalate to the Snapshot stage
If Snapshot outcome is Yae, escalate to the ARFC stage
Publish a standard ARFC and collect community & service provider feedback
If ARFC snapshot passes, publish an AIP vote for final confirmation and enforcement
I am very curious to see how this new instance will evolve and what kind of new user base will be onboarded to Aave.
Revenue share and token sharing seems fair and signals that a good relationship is important for WLF.
Some of your concerns can indeed be understood. Unfortunately, when creating a system that seems reliable to him, a person sometimes encounters the fact that it is hacked by intruders. From this, I consider it extremely incorrect to draw conclusions about the decency or dishonesty of the person who created the system. I believe that the experience gained, even if there was a negative experience, adds competencies to the project participants. But your next thesis raises questions for me: Is it beneficial to Aave to collaborate with an entity known for sewing hate, fear, lies, and dissension around the world? Question: Who are you talking about, the US or the presidential candidate Trump? If you are talking about a state, then your accusation can be attributed to most states of the World. But if you are talking about Donald Trump, then these are extremely dubious accusations against a man who has already survived a third assassination attempt. Of course, Trump, like any of us, has his flaws, but the fact that he is a single-minded and determined person who is able to inspire and lead people is an undeniable fact.
Caution has never harmed anyone. It’s a normal desire to be careful. Unfortunately, it is the democracies that take excessive control and regulation of the markets of the crypto industry. In my opinion, the decentralization of various crypto tools is already largely conditional, not absolute. Therefore, it is necessary to evaluate not so much the personality as the idea that this personality promotes. Assessing the current position of presidential candidate Donald Trump, I got the impression that there are generally positive signals for the crypto industry. Apparently Aave is also positive about the prospects for cooperation with WorldLibertyFi, otherwise we would not have had a discussion here. And that makes me happy.
Hi @WorldLibertyFi. The public has been informed about the distribution of shares of the project participants, as well as how many WLFi tokens will be sold to individual participants, as a percentage of the total weight. This information is in the roadmap. I have not found any information about the volume of the total issue of WLFi tokens anywhere. Could you clarify this aspect of the World Liberty Financial plans?
This proposal from World Liberty Financial (WLF) could open exciting new doors for Aave, but understanding the target audience is crucial to fully grasp its potential. Who does WLF aim to onboard with this Aave v3 instance? Identifying the specific user segments—whether it’s institutional investors, retail users, or crypto newcomers—will help us assess the long-term value of this collaboration for Aave.
One point to consider is that Aave will receive 20% of the revenue generated by the WLF instance, compared to 100% from the main Aave instance. It’s worth evaluating whether this might lead to internal competition between Aave’s current market and WLF’s, or if the growth from new users and increased liquidity will far exceed any potential downside. Given WLF’s focus on promoting DeFi to a broader audience, there’s a real opportunity here to drive significant growth for both platforms.
Some further details that would help clarify things:
Which networks will this proposal cover? Will it be deployed on Ethereum only, include Layer 2s, or start on Ethereum with expansion flexibility? (Update: proposal title have been update and now indicate Ethereum instance)
Will this instance require KYC (Know Your Customer) processes, or will it be open and permissionless?
Thank you to World Liberty Financial for bringing this forward! This proposal has exciting potential, and I’m eager to see how it can expand Aave’s reach while benefiting the entire DeFi ecosystem.
Seems risky. Founders were part of Dough Finance (hacked and failed), their Subify platform (OnlyFans replacement that also failed), and are partnered with Logan Paul of the famously failed CryptoZoo. Why aren’t they answering the questions that have been directly posed to them in this thread? They drop the proposal and disappear? Why is the whitepaper being released on the same day at the presale (news outlets that have it claim reads just like the Dough Finance one)?
This is a non-transferrable, non-fungible governance token, open only to those that submit to KYC, are accreddited investors or those with a $1,000,000+ net worth. The founders have locked up 70% of the supply for themselves. This is DeFi how, in name only?
I don’t see how it benefits Aave, nor do I think it will bring mass adoption given the fact that only the rich and elite are going to get the first opportunity at the governance token. I’d also suspect most newcomers who do eventually get in won’t understand that they are purchasing voting rights, and nothing else.
Thanks for sharing your thoughts! We’re happy to provide some clarity.
Past Experience: While our team has been part of various projects with different outcomes, each experience has helped us build a stronger and more secure platform in World Liberty Financial (WLF). We have a diverse team with a wide range of expertise, from blockchain technology and security to finance and compliance. It’s a big reason why we’re working with Aave—to ensure WLF is best in class, aligning with Aave’s own industry-leading standards.
No Connection to CryptoZoo: Just to clarify, neither our team nor our founders have any connection to CryptoZoo. WLF is an independent project with a clear focus on creating decentralized financial tools that empower users and support the US Dollar’s role in the global economy.
Transparency and Engagement: We’re here to address questions! Apologies if we missed any previously—we’re committed to fostering an open dialogue with the community. This is just the beginning, and we’ll continue to keep everyone updated.
Whitepaper and Token Sale Timing: The whitepaper was released alongside our token sale for compliance reasons, ensuring participants have the most current information available at the time of purchase. WLF is a unique project, and our whitepaper outlines its distinct mission and approach.
Governance and Accessibility: Regarding token accessibility, the accredited investor requirement is for US participants only, as we’re committed to meeting regulatory requirements. internationally, however, this restriction does not apply
We believe WLF can benefit Aave by attracting users interested in stablecoin-backed DeFi. We’re excited to contribute to the Aave community and build something impactful together.
Can you explain how you would make this happen? According to the whitepaper, you say
“No $WLFI token holder is entitled to vote more than 5% of the
votable total supply, helping to contribute to balanced governance”
Will there be a limit on how many tokens Aave can use to vote?
Token sharing seems pointless as well as from what I understand, tokens cannot be sold or transferred, please correct me if I’m wrong.
This compensation program may create a conflict of interest, by motivating such persons to operate and promote $WLFI, the WLF Governance Platform or the WLF Protocol in a manner that is not in the best interests of the WLF Protocol Token holders. For example, these persons could be motivated to make or recommend riskier or more speculative decisions in order for the WLF Protocol to generate additional fees to higher compensation, which may have no benefit or harm the interests of Token holders.
Additionally, how are you ensuring that none of the above will happen to the WLF Protocol, ensuring long-term viability? It seems like two people have a large amount of control over a decentralized project.
After community discussion, the current proposal has been escalated to TEMP CHECK Snapshot to vote on whether proposal should be moving forward through governance or not at this stage.
Vote will start tomorrow, we encourage everyone to participate.
After Snapshot monitoring, the current TEMP CHECK Snapshot ended recently, reaching both Quorum and YAE as winning option, with 808K votes.
Therefore, the TEMP CHECK has PASSED.
Next step will be the publication of an ARFC to continue gather feedback from both community and Service Providers before moving forward with the governance process.
We must create bridges between legacy economic system and DeFi, so everyone can transition safely at their own pace.
Since our system is objectively better, it will win in a free market. We don’t need a hostile take over, we win by them switching to us willingly. Fractional RWA holds the keys for this (fractional stocks, fractional real estate and stable coins for fiat and every commodity).
