- The credit account system for Donald Trump’s World Liberty Financial will be built on Aave and Ethereum blockchains, a new white paper says.
- The project is coming under intense criticism for its similarity to Dough Finance, a DeFi project that was hacked in July and lost $2 million.
When Donald Trump announced a blockchain project that he would use to avail financial services to the marginalized if he took power later this year, most people doubted his genuineness. However, unlike his other promises to the crypto faithful, this one is moving fast, with a new whitepaper showing that Ethereum and Aave will play a massive role.
In the past week, a lot of information has been revealed about the project, which was rebranded to World Liberty Financial. after launching as “The Defiant Ones.” Expectedly, some of it has been pure fad, and the project has taken to social media to give its side of the story.
The first was about Aave, the decentralized protocol where users borrow and lend money efficiently without any intermediaries. Initially, it had been claimed that the project would fork from Aave, but it has clarified that it has been working with Aave, stating:
Let’s be clear: we’re not just another hostile fork of Aave. History shows those don’t work. We’re working with Aave, collaborating to create a platform that sets new standards and pushes all of DeFi forward. This is a partnership to build something truly transformative.
Gabriel Shapiro, a popular crypto lawyer, gave more context, stating, “My personal guess, and I hope it’s presented accordingly, is that it’s similar to the Trump NFT thing–it’s a way for Trump supporters to signal their support and learn/experience a bit about DeFi at the same time…Aave is real DeFi, it just deposits into Aave AFAIK.”
The revelation has handed a huge boost to Aave in a week when 90% of the top 100 coins were in the red. AAVE gained 1.6% in the past day and 6.4% in the past week, the fifth-highest in that time.
While it’s still one of the largest DeFi protocols in the industry with over $11 billion in TVL, Aave’s relevance has increasingly sunk, and with it, the price. As the chart below shows, it has been stuck in a two-year consolidation, from which it very recently broke free, and if Trump continues building on the network, it could solidify the breakout. A Trump victory in November could supercharge AAVE.
The project will also be partly built on Ethereum, which comes as no surprise since it’s the undisputed smart contracts market leader. It also helps that Trump is an ETH fan himself; election disclosures last month showed that he owned anywhere between $1 and $5 million in ETH, with Arkham Intelligence showing that it has increased to $5.3 million today.
ETH dipped 1% in the past day and trades at $2.388 at press time.
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