World Liberty Financial (WLFI), a DeFi project with ties to US President-elect Donald Trump, has teamed up with Chainlink in a bid to boost DeFi adoption. The partnership, announced on November 14, sees Chainlink becoming the primary provider for on-chain data and cross-chain connectivity for WLFI. This collaboration aims to support the upcoming launch of WLFI on the Ethereum mainnet.
As part of the integration, WLFI will be incorporating Chainlink’s Price Feeds on the Ethereum mainnet. This move will facilitate the secure onboarding of digital assets such as USDC, USDT, ETH, and WBTC for WLFI’s Aave v3 protocol instance. The integration is subject to approval by the WLFI Governance Platform.
Sergey Nazarov, co-founder of Chainlink, highlighted the network’s robust security and reliability, making it a fitting choice for WLFI’s infrastructure requirements. He expressed confidence that the partnership between Chainlink and WLFI would attract users who prioritize dependable technology in the DeFi space.
Despite the promising partnership with Chainlink, WLFI has faced challenges in meeting its financial targets. Initially aiming to raise $300 million, the project later lowered its target to $30 million due to lackluster demand from crypto investors. However, data from WLFI’s website indicates that the project has fallen short of even its revised funding goals, having raised less than $20 million from the sale of 1.3 billion tokens.
WLFI envisions itself as a DeFi hub where users can engage in lending, borrowing, and investing in digital assets. The project aims to provide users with access to third-party DeFi applications that support the adoption of US dollar-based stablecoins, with the ultimate goal of maintaining the Dollar as the world’s reserve currency.
Central to WLFI’s mission is the WLFI token, which grants holders voting rights on protocol decisions and active participation in shaping the platform’s future. Despite these aspirations, the project has faced criticism from the crypto community. Galaxy Digital, an asset management firm, pointed out that WLFI currently exists more as an idea rather than a fully developed protocol.
Galaxy Digital highlighted the uncertainty surrounding WLFI’s future, citing a lack of information on project details, finalized development plans, and necessary code releases. The firm also mentioned concerns about key dependencies, such as Aave licensing, and market skepticism regarding the project’s future, even within the crypto community’s Republican-leaning tendencies.
In conclusion, the collaboration between WLFI and Chainlink holds promise for accelerating DeFi adoption. However, WLFI must address its financial challenges and address criticisms to solidify its position in the competitive DeFi landscape.