World Liberty Financial, also known as WLF, offered to launch on Aave’s Ethereum mainnet instance. This is being coined as a big move and will help Aave and WLF gain big in the market. The main focus is to provide stablecoin liquidity for wrapped BTC and Ethereum, along with expanding the user base of the AAVE protocol. Aave Governance speculates that Aave v3 will also provide liquidity for other digital assets.
This proposal is currently under consideration and is subject to World Liberty Financial community approval and AaveDAO governance approval. Only with the green light from both sides will action begin for the community to take a stand on the proposal’s core purpose.
WLF, a DeFi protocol, can help promote this segment to a wider audience through marketing efforts. Additionally, the concept of oversecured lending will be introduced to a new user group. New users will only join the platform if the user experience is seamless. Therefore, this continues to be a major topic of discussion for both Aave and WLF. This concerns the supply and borrowing of digital assets.
The first scope of this proposal will only allow deposits of selected tokens. These are USDT, USDC, ETH, and WBTC. Other digital assets are subject to realization by Aave and any progress will be noted. Users can only deposit these tokens as collateral and borrow the same assets. AaveDAO receives 20% of the protocol fees generated by your instances. This amounts to 7% of the total supply of WLF tokens.
Obtaining a supply of tokens will enable AaveDAO to occupy a key position in promoting WLF governance procedures, liquidity mining, and decentralization.
Aave will benefit from attracting new users, fostering brand loyalty, increasing awareness among DeFi users, and securing its position at the forefront of the asset borrowing and supply market. Again, the tokens listed are in the early stages and may be expanded in the future. Other implementations include market inclusion, eMode, risk management, and user incentives.
However, eMode may be disabled initially. Dynamically adjusting the supply of ETH and WBTC drives risk management. User incentives will be deployed in the form of WLF tokens.
However, AAVE has not yet responded to this development. The token has fallen 0.30% in the past 24 hours and was worth $141.94 at the time of writing. Furthermore, it reflects an increase of 1.85% over the past 7 days and an increase of 3.52% over the past 30 days. According to recent Aave price predictions, Aave is expected to cross $150 by the end of October 2024.
In the future, it will be interesting to see if the two sides are able to reach an agreement, and if so, what kind of feedback users will provide to Aave and WLF.
