World Liberty Financial (WLFI) Secures $7.5 Million USDT Loan Through Aave
World Liberty Financial (WLFI), a DeFi venture associated with US President Donald Trump, has recently obtained a $7.5 million USDT loan via the Aave lending platform. This move comes after WLFI supplied assets worth over $52 million to Aave, including 7,900 Ethereum (ETH), 162.69 Wrapped Bitcoin (WBTC), and 5,010 staked Ethereum (stETH).
Subsequently, WLFI proceeded to borrow $7.5 million USDT from Aave V3 and transferred the loaned amount to a BitGo wallet. While WLFI has not officially commented on the loan or its specific purpose, it is speculated that the transaction was carried out to facilitate USD1 withdrawal.
USD1 is a stablecoin recently launched by WLFI, pegged to the US dollar, and has gained significant traction in both centralized and decentralized markets, including being listed on prominent exchanges like Binance.
Strengthening Bonds Between Aave and WLFI
This recent loan signifies the deepening relationship between WLFI and Aave, the leading DeFi lending protocol. Last year, WLFI announced plans to implement its version of the Aave V3 money market on Ethereum, allowing for borrowing and lending of key assets such as ETH, WBTC, USDT, and USDC.
As part of this collaboration, WLFI agreed to share 20% of protocol fees with AaveDAO in exchange for access to Aave’s code. Additionally, AaveDAO will receive 7% of WLFI’s token supply, granting it governance rights within WLFI’s ecosystem.
Furthermore, WLFI made a strategic investment of over $1 million in AAVE tokens and other DeFi projects, showcasing its commitment to integrating with Aave’s DeFi infrastructure.
Industry experts view these strategic moves as a testament to WLFI’s dedication to leveraging Aave’s platform for its DeFi initiatives.
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