# Proposal To Launch Aave V3 Instance On Ethereum Mainnet **URL:** \ **Category:** General\ **Created:** [November 26, 2024, 7:41pm UTC](https://governance.worldlibertyfinancial.com/t/proposal-to-launch-aave-v3-instance-on-ethereum-mainnet/1590 "2024-11-26T19:41:27Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![WLFI](https://yyz2.discourse-cdn.com/flex034/user_avatar/governance.worldlibertyfinancial.com/wlfi/32/704_2.png) [@WLFI](https://governance.worldlibertyfinancial.com/u/WLFI)\ **Post date:** [November 26, 2024, 7:41pm UTC](https://governance.worldlibertyfinancial.com/t/proposal-to-launch-aave-v3-instance-on-ethereum-mainnet/1590/1 "2024-11-26T19:41:27Z")
Summary The purpose of this proposal is to deploy a World Liberty Financial Aave v3 instance for the World Liberty Financial Protocol. This instance will be managed through external risk managers and will be built on the existing Aave v3 infrastructure and launch on Ethereum mainnet. WLFI Protocol Description The WLFI Protocol will provide liquidity for Ethereum, Wrapped Bitcoin, certain stablecoins, and potentially other digital assets. WLFI will make the WLFI Protocol Aave instance available to WLFI Protocol users, and the WLFI Protocol Aave instance will be managed through Aave risk management. WLFI seeks to introduce a new class of users to over-collateralized borrowing and lending, one of the most important DeFi functionalities. WLFI intends to onboard new users into DeFi by providing seamless user experiences for supplying and borrowing against digital assets. Many of these users will be first-time DeFi users, which will build brand loyalty and recognition for both WLFI and Aave. This is intended to help make and keep Aave a market leader in the digital asset borrowing and supply space. Initially, the WLFI Protocol will allow USDC, USDT, ETH, and WBTC for both borrowing and lending. Additional assets may be added through future WLFI voting proposals. WLFI will utilize the same reserve factor system in this Aave v3 instance as is maintained in the main Aaaveinstance. AaveDAO will receive 20% of the protocol fees generated by the WLFI Aave v3 instance and will also receive approximately 7% of the total circulating supply of $WLFI tokens for participation in future WLFI Governance procedures, liquidity mining and promoting decentralization of the WLFI platform. The revenue split will be set up using a trustless smart contract that directs the appropriate percentage of protocol fees to the AaveDAO treasury and WLFI treasury addresses. The Aave risk managers will dynamically adjust ETH and WBTC supply caps based on stablecoin liquidity to seek to ensure stablecoin borrowing remains viable. Users of the WLFI Protocol will receive $WLFI tokens for participating in the WLFI Protocol, subject to any restrictions under applicable law. ---
**Author:** ![Beau](https://avatars.discourse-cdn.com/v4/letter/b/94ad74/32.png) [@Beau](https://governance.worldlibertyfinancial.com/u/Beau)\ **Post date:** [November 30, 2024, 9:38pm UTC](https://governance.worldlibertyfinancial.com/t/proposal-to-launch-aave-v3-instance-on-ethereum-mainnet/1590/2 "2024-11-30T21:38:39Z")
Good initiative. Let’s get moving. ---
**Author:** ![rajeshgone](https://yyz2.discourse-cdn.com/flex034/user_avatar/governance.worldlibertyfinancial.com/rajeshgone/32/734_2.png) [@rajeshgone](https://governance.worldlibertyfinancial.com/u/rajeshgone)\ **Post date:** [November 30, 2024, 9:38pm UTC](https://governance.worldlibertyfinancial.com/t/proposal-to-launch-aave-v3-instance-on-ethereum-mainnet/1590/3 "2024-11-30T21:38:50Z")
is agood idea,Aave v3 is quiet risk free ---
**Author:** ![isan](https://yyz2.discourse-cdn.com/flex034/user_avatar/governance.worldlibertyfinancial.com/isan/32/615_2.png) [@isan](https://governance.worldlibertyfinancial.com/u/isan)\ **Post date:** [November 30, 2024, 9:39pm UTC](https://governance.worldlibertyfinancial.com/t/proposal-to-launch-aave-v3-instance-on-ethereum-mainnet/1590/4 "2024-11-30T21:39:34Z")
This proposal is fully supported. Deploying a World Liberty Financial Aave v3 instance on Ethereum Mainnet will enhance the use cases for the WLFI protocol for users in DeFi. ---
**Author:** ![digitalsalihu](https://yyz2.discourse-cdn.com/flex034/user_avatar/governance.worldlibertyfinancial.com/digitalsalihu/32/368_2.png) [@digitalsalihu](https://governance.worldlibertyfinancial.com/u/digitalsalihu)\ **Post date:** [November 30, 2024, 9:39pm UTC](https://governance.worldlibertyfinancial.com/t/proposal-to-launch-aave-v3-instance-on-ethereum-mainnet/1590/5 "2024-11-30T21:39:38Z")
Supported, let make WLFI more great ---
**Author:** ![CrYpToLoGiC](https://avatars.discourse-cdn.com/v4/letter/c/e9a140/32.png) [@CrYpToLoGiC](https://governance.worldlibertyfinancial.com/u/CrYpToLoGiC)\ **Post date:** [November 30, 2024, 9:40pm UTC](https://governance.worldlibertyfinancial.com/t/proposal-to-launch-aave-v3-instance-on-ethereum-mainnet/1590/6 "2024-11-30T21:40:11Z")
Not a bad proposal but giving 20% of all the protocol fees to AAVE seems exorbitant. We should consider looking at other smaller platforms as well. How about deploying a WLFI instance to BNB Chain also where GAS cost is way less than ETH Mainnet? For comparison, a staking TX on ETH costs between $8 and $70 depending on network usage while the same on BNB Chain or most L2’a cost’s less than $0.10/tx IMO, looking into platforms like [Venus.io](http://Venus.io) could be very interesting. While Venus is a bit smaller with about $3B in combined TVL across different networks, they have the capacity to grow tremendously and would probably be willing to cut a deal to the WLFI community for half of what AAVE’s asking which means, each WLFI token holders would probably be receiving more dividends in the future if less is spent on commissions and also spend a lot less money on GAS for their transactions. Worth exploring the opportunity? ---
**Author:** ![SlinkyPotato](https://yyz2.discourse-cdn.com/flex034/user_avatar/governance.worldlibertyfinancial.com/slinkypotato/32/708_2.png) [@SlinkyPotato](https://governance.worldlibertyfinancial.com/u/SlinkyPotato)\ **Post date:** [November 30, 2024, 9:40pm UTC](https://governance.worldlibertyfinancial.com/t/proposal-to-launch-aave-v3-instance-on-ethereum-mainnet/1590/7 "2024-11-30T21:40:18Z")
One of the major pain points of using Ethereum is the gas fees. Have we considered deploying directly to L2s like Polygon which offers vastly reduced fees? ---
**Author:** ![Anand\_Raj](https://yyz2.discourse-cdn.com/flex034/user_avatar/governance.worldlibertyfinancial.com/anand_raj/32/705_2.png) [@Anand\_Raj](https://governance.worldlibertyfinancial.com/u/Anand_Raj)\ **Post date:** [November 30, 2024, 9:40pm UTC](https://governance.worldlibertyfinancial.com/t/proposal-to-launch-aave-v3-instance-on-ethereum-mainnet/1590/8 "2024-11-30T21:40:37Z")
Agreed, This step will be great for expansion of this project… ---
**Author:** ![Beau](https://avatars.discourse-cdn.com/v4/letter/b/94ad74/32.png) [@Beau](https://governance.worldlibertyfinancial.com/u/Beau)\ **Post date:** [November 30, 2024, 9:41pm UTC](https://governance.worldlibertyfinancial.com/t/proposal-to-launch-aave-v3-instance-on-ethereum-mainnet/1590/9 "2024-11-30T21:41:49Z")
Not too clear how to vote ---
**Author:** ![Toto](https://yyz2.discourse-cdn.com/flex034/user_avatar/governance.worldlibertyfinancial.com/toto/32/8415_2.png) [@Toto](https://governance.worldlibertyfinancial.com/u/Toto)\ **Post date:** [November 30, 2024, 9:42pm UTC](https://governance.worldlibertyfinancial.com/t/proposal-to-launch-aave-v3-instance-on-ethereum-mainnet/1590/10 "2024-11-30T21:42:05Z")
Interesting , is that mean if we want stake WLFI , can we stake on AAVE ---
**Author:** ![bassolana\_darrel](https://yyz2.discourse-cdn.com/flex034/user_avatar/governance.worldlibertyfinancial.com/bassolana_darrel/32/3905_2.png) [@bassolana\_darrel](https://governance.worldlibertyfinancial.com/u/bassolana_darrel)\ **Post date:** [November 30, 2024, 9:42pm UTC](https://governance.worldlibertyfinancial.com/t/proposal-to-launch-aave-v3-instance-on-ethereum-mainnet/1590/11 "2024-11-30T21:42:41Z")
we don’t need etherium because of high gas fees,chains like sui or solana are better alternatives ---
**Author:** ![christy\_b](https://yyz2.discourse-cdn.com/flex034/user_avatar/governance.worldlibertyfinancial.com/christy_b/32/709_2.png) [@christy\_b](https://governance.worldlibertyfinancial.com/u/christy_b)\ **Post date:** [November 30, 2024, 9:43pm UTC](https://governance.worldlibertyfinancial.com/t/proposal-to-launch-aave-v3-instance-on-ethereum-mainnet/1590/12 "2024-11-30T21:43:03Z")
I’m not fond of anything on Etherium. The fees are extreme compared to other options. Why would anything run on etherium with faster, cheaper options available? ---
**Author:** ![MahoMatik](https://yyz2.discourse-cdn.com/flex034/user_avatar/governance.worldlibertyfinancial.com/mahomatik/32/318_2.png) [@MahoMatik](https://governance.worldlibertyfinancial.com/u/MahoMatik)\ **Post date:** [November 30, 2024, 9:43pm UTC](https://governance.worldlibertyfinancial.com/t/proposal-to-launch-aave-v3-instance-on-ethereum-mainnet/1590/13 "2024-11-30T21:43:08Z")
**What could the lending system in the WLFI Protocol look like?** The WLFI Protocol could adopt an **over-collateralized model** , a proven structure in DeFi that ensures security, efficiency, and stability. In addition, the WLFI token system would play a key role in creating long-term value and user engagement. Here’s a potential approach: ### **Lending System in the WLFI Protocol** 1. **Depositing Assets:** Users deposit digital assets such as ETH, WBTC, USDC, or USDT into the protocol. These deposits act as collateral and provide liquidity for other users who wish to borrow. 2. **Tokenized Deposits:** Depositors receive special tokens (e.g., aETH, aUSDC) that represent their deposits and any earned interest. These tokens grow in value as long as the assets remain in the protocol. 3. **Borrowing Against Collateral:** Users can borrow against their deposited assets as collateral. - Example: Deposited ETH can be used to borrow USDC. - Borrowers can typically access up to 80% of the value of their collateral, ensuring stability even during market fluctuations. 1. **Interest Payments:** Borrowers pay interest on their loans, which is distributed to depositors as earnings. This creates a mutually beneficial system where depositors earn yield, and borrowers access liquidity. 2. **Loan Repayment:** Once the loan (borrowed amount + interest) is fully repaid, borrowers can withdraw their collateral from the protocol. 3. **Liquidations:** If the value of a borrower’s collateral drops below a critical threshold, a portion of the collateral is automatically sold to cover the loan. This protects the overall liquidity of the protocol and ensures stability. ### **WLFI Token Model for Long-Term Value** To ensure the WLFI token holds and increases in value over time, the following mechanisms could be implemented: 1. **Revenue Sharing:** A portion of the protocol’s fees could flow into the WLFI treasury. These funds could be used to buy back and burn WLFI tokens, reducing supply and driving long-term value appreciation. 2. **Incentive System:** Users who supply liquidity or borrow funds could be rewarded with WLFI tokens. This would encourage participation and attract new users to the protocol. 3. **Staking and Additional Rewards:** WLFI tokens could be used for staking, allowing holders to earn additional rewards. Stakers might receive a share of protocol revenues or bonus WLFI tokens as an incentive. 4. **Integration with Other Ecosystems:** The WLFI token could be integrated into other DeFi protocols or platforms, enabling additional use cases such as collateral for loans or payment within the WLFI ecosystem. This model combines a secure and efficient lending system with a well-thought-out token ecosystem. It not only attracts and retains users but also ensures that WLFI tokens maintain long-term value and utility. ---
**Author:** ![user43](https://yyz2.discourse-cdn.com/flex034/user_avatar/governance.worldlibertyfinancial.com/user43/32/732_2.png) [@user43](https://governance.worldlibertyfinancial.com/u/user43)\ **Post date:** [November 30, 2024, 9:43pm UTC](https://governance.worldlibertyfinancial.com/t/proposal-to-launch-aave-v3-instance-on-ethereum-mainnet/1590/14 "2024-11-30T21:43:10Z")
The ETH transaction fees are too high. ---
**Author:** ![JackDeth](https://avatars.discourse-cdn.com/v4/letter/j/82dd89/32.png) [@JackDeth](https://governance.worldlibertyfinancial.com/u/JackDeth)\ **Post date:** [November 30, 2024, 9:43pm UTC](https://governance.worldlibertyfinancial.com/t/proposal-to-launch-aave-v3-instance-on-ethereum-mainnet/1590/15 "2024-11-30T21:43:20Z")
This sounds good. Additional background: [Aave V3 | Aave Protocol Documentation](https://aave.com/docs/developers/aave-v3) ---
**Author:** ![Ferrari458](https://yyz2.discourse-cdn.com/flex034/user_avatar/governance.worldlibertyfinancial.com/ferrari458/32/16_2.png) [@Ferrari458](https://governance.worldlibertyfinancial.com/u/Ferrari458)\ **Post date:** [November 30, 2024, 9:43pm UTC](https://governance.worldlibertyfinancial.com/t/proposal-to-launch-aave-v3-instance-on-ethereum-mainnet/1590/16 "2024-11-30T21:43:23Z")
How do we vote? Can someone please help. ---
**Author:** ![poonam](https://yyz2.discourse-cdn.com/flex034/user_avatar/governance.worldlibertyfinancial.com/poonam/32/6803_2.png) [@poonam](https://governance.worldlibertyfinancial.com/u/poonam)\ **Post date:** [November 30, 2024, 9:43pm UTC](https://governance.worldlibertyfinancial.com/t/proposal-to-launch-aave-v3-instance-on-ethereum-mainnet/1590/17 "2024-11-30T21:43:32Z")
So Nice for both chains “ETH and BTC” and also good % of rewards. Nice proposal and nice team. I congratulate WLFI and thank for the opportunity. All the best. ---
**Author:** ![shashisenses](https://yyz2.discourse-cdn.com/flex034/user_avatar/governance.worldlibertyfinancial.com/shashisenses/32/18_2.png) [@shashisenses](https://governance.worldlibertyfinancial.com/u/shashisenses)\ **Post date:** [November 30, 2024, 9:43pm UTC](https://governance.worldlibertyfinancial.com/t/proposal-to-launch-aave-v3-instance-on-ethereum-mainnet/1590/18 "2024-11-30T21:43:37Z")
Amazing! Nice percentage of rewards on governance. wonderfully planned. All the best team and community. God Bless WLFI. ---
**Author:** ![Yu\_Yi](https://yyz2.discourse-cdn.com/flex034/user_avatar/governance.worldlibertyfinancial.com/yu_yi/32/730_2.png) [@Yu\_Yi](https://governance.worldlibertyfinancial.com/u/Yu_Yi)\ **Post date:** [November 30, 2024, 9:43pm UTC](https://governance.worldlibertyfinancial.com/t/proposal-to-launch-aave-v3-instance-on-ethereum-mainnet/1590/19 "2024-11-30T21:43:40Z")
yes ，yes，yes，yes,yes ---
**Author:** ![Le\_cazin\_De\_ses\_mort](https://yyz2.discourse-cdn.com/flex034/user_avatar/governance.worldlibertyfinancial.com/le_cazin_de_ses_mort/32/501_2.png) [@Le\_cazin\_De\_ses\_mort](https://governance.worldlibertyfinancial.com/u/Le_cazin_De_ses_mort)\ **Post date:** [November 30, 2024, 9:43pm UTC](https://governance.worldlibertyfinancial.com/t/proposal-to-launch-aave-v3-instance-on-ethereum-mainnet/1590/20 "2024-11-30T21:43:43Z")
Sounds good to me, make it live [Next page](https://governance.worldlibertyfinancial.com/t/proposal-to-launch-aave-v3-instance-on-ethereum-mainnet/1590.md?page=2)