World Liberty Financial (WLFI) is a DeFi project that has gained significant attention over the past year. Its popularity primarily stems from the backing of Donald Trump and his family. This project aims to strengthen the role of the U.S. dollar, particularly through the promotion of stablecoins and the adoption of decentralized finance. Although the project has not officially launched yet, the WLFI token has already entered the market, generating substantial interest.
What is World Liberty Financial, and How Does it Work?
World Liberty Financial’s purpose is to consolidate the dominance of the U.S. dollar within the DeFi ecosystem, positioning dollar-backed stablecoins as the global settlement layer for financial transactions. The idea is that, just as the U.S. dollar has been the cornerstone of global finance, dollar-backed stablecoins should remain essential over the next 100 years.
Although the project is not yet officially operational, it is expected to launch using Aave V3’s infrastructure, a decentralized lending and borrowing platform. In this way, World Liberty Financial will initially function as a cryptocurrency lending marketplace based on Aave’s technology, enabling it to share protocol revenues with Aave’s decentralized autonomous organization (DAO).
Trump’s Endorsement and the Apolitical Approach
One of the most notable aspects of World Liberty Financial is its endorsement by Donald Trump and his family, who act as advisors to the project. However, the project emphasizes that neither Trump nor his family members are part of the platform’s board of directors. They only provide advisory services and have received approximately 22.5 billion WLFI tokens, along with an agreement to receive fees for their contributions. The project maintains that it is apolitical and unrelated to any political campaign.
It is worth noting that Trump’s return to the U.S. presidency and his promise of a renewed approach to cryptocurrency adoption and promotion could significantly benefit WLFI, Bitcoin, and the broader crypto market.
However, beyond the policies enacted during his administration, these initiatives would need sustained support over the years if the vision of positioning the United States as a crypto powerhouse is to materialize and remain desirable for future administrations.
The WLFI Token: Features and Functionality
WLFI is the governance token of World Liberty Financial, meaning its sole purpose within the ecosystem is to allow holders to vote on proposals related to the platform’s governance.
Unlike other governance tokens such as UNI or MKR, WLFI does not offer economic rights. This means holders will not receive dividends or participate in any potential value increase of the cryptocurrency. Furthermore, the token is non-transferable, meaning it cannot be traded or sold, making it an unusual choice for investors seeking high liquidity.
The Public Sale of WLFI Tokens
The public sale of WLFI tokens began in October 2024 and ran through January 2025. A total of 20 billion tokens were offered, representing 20% of the total supply. To date, approximately $14 million has been raised, with a portion of the tokens sold via USDC, USDT, and ETH. In January 2025, the project launched an additional sale of 5 billion tokens (5% of the total supply).
Despite WLFI’s lack of liquidity, the project has piqued the interest of many users, who have started investing despite the token’s unusual conditions.
Is WLFI a Good Investment?
Determining whether WLFI is a good investment depends on several factors. On the one hand, the endorsement of prominent figures like Donald Trump could inspire confidence among certain investors. However, the lack of economic rights and the token’s non-transferable nature make this project unconventional in the DeFi world. While the goal of strengthening the U.S. dollar’s role in the DeFi ecosystem is ambitious, the token’s lack of liquidity and uncertainty about its future raise questions about its short- and medium-term viability.
Platform Security
Regarding security, the project is still in its early stages and has not officially launched its platform, meaning no security incidents have been reported. However, the fact that the project is based on Aave V3’s infrastructure, which is already a well-established platform, adds an extra layer of confidence. Nevertheless, any cryptocurrency investment inherently carries risks, especially when dealing with new projects that have yet to demonstrate long-term stability.
Conclusion
World Liberty Financial is a project generating significant expectations. However, the unusual characteristics of its token, such as its non-transferability and lack of economic rights, present a risk that investors must consider.
While the project has an interesting approach and ambitious goals, potential investors should be aware of WLFI’s atypical nature. The token’s lack of liquidity and the uncertainty surrounding its long-term value make this project high-risk. The viability of World Liberty Financial will depend on how it develops over the coming years
