Misinformation Drama Erupts Over Rumored Deal Between WLFI and AAVE Token

World Liberty Financial (WLFI), a DeFi project linked to US President Donald Trump, has become the center of a governance dispute. The controversy comes after speculation about its potential ties to AAVE, a leading decentralized lending protocol.

The discussion escalated when WLFI confirmed its Token would be transferable and begin trading in September.

AAVE Founder Confirms Deal Still On

Soon after, crypto users mentioned a governance proposal due by the end of 2024. The document suggested that AAVE could receive 7% of WLFI’s total Token supply, an allocation worth nearly $3 billion at current prices.

The proposal also mentions that 20% of the protocol revenue generated from the planned integration of WLFI with AAVE v3 will flow into the governance of this lending platform.

These claims seem to have attracted quick attention from the WLFI team.

A representative affiliated with WLFI told Wu Blockchain that no such agreement exists, dismissing the reports as inaccurate.

“The WLFI team has told WuBlockchain that the claim ‘AAVE will receive 7% of the total WLFI Token supply’ is false and fake news,” Wu Blockchain reported .

However, AAVE founder Stani Kulechov offered a conflicting view, noting on X that the proposal was voted on in AAVE 's DAO and that WLFI had signaled consent.

Meanwhile, the gap between these statements seems to have unsettled crypto traders.

According to data from BeInCrypto , the AAVE price dropped nearly 2% in the hours following the exchange, falling to $346.15 after swinging sharply between $343.63 and $367.73.

Industry experts say the uncertainty surrounding governance decisions is directly affecting market sentiment.

Meanwhile, market observers note that the incident could significantly impact WLFI’s reputation and the use of decentralized governance arrangements in the broader industry.

‘There is a reason why there is so much legal terminology in finance… If this is true, then expect DeFi business development to become more contractualized,” said crypto analyst Figue.

A DFI project linked to President Trump is now facing questions about whether it can manage expectations ahead of its Token launch.

AAVE, which recently surpassed $3 trillion in total deposits, remains a mainstay of the lending industry . However, the controversy reflects the need for more transparent frameworks in Token based collaborations.