The price of the AAVE token (AAVE) fell by more than 8% on Saturday, following rumors that the decentralized finance protocol (DEFI) would receive a different token allowance from World Liberty Financial (WLFI), a DEFI platform supported by the members of the family of the American president Donald Trump.
“The WLFI team told Wublockchain that the statement that” Aave will receive 7% of the total supply of WLFI tokens “is false and false,” said the journalist for the Colin Wu blockchain, causing a debate on rumor and the token agreement on social media.
Wu referred to a WLFI community proposal from October 2024, describing an arrangement in which the Decentralized Autonomous Organization (DAO) AAVE would receive 7% of the circulating offer of WLFI governance and 20% of the protocol income generated by WLFI work on Aave V3.
The founder of Aave, Stani Kulechov, described the proposal for “the art of the agreement” on Saturday and, in a separate position, reported that the terms of the proposal were still valid. After the rumors, the Aave token went from about $ 385 to a hollow of $ 339 before rebounding at around $ 352.
Cointelegraph contacted the spokesperson for World Liberty Financial and Aave but did not receive an answer at the time of the publication.
Rumors concerning the arrangement between Aave and world freedom are involved in a renewed interest in DEFI and an increasing institutional involvement in the cryptographic niche.
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The DEFI sector is increasing while institutions take note
The total locked value (TVL) in the DEFI protocols is currently more than $ 167 billion, according to Defillama, and approach to the summit of more than $ 212 billion compared to December 2021.
DEFI TVL increased sharply following the results of the US elections in 2024 in anticipation of a more user-friendly regulatory climate for cryptocurrencies in the country.
Institutional investors, including banks, asset managers, companies and financial service companies, are increasingly involved in the crypto and the challenge, shaping many stories during the current market cycle.
This involvement has fueled a debate among the cryptographic community on the encroachment of government regulations on protocols without authorization and the potential capture of DEFI by traditional financial institutions.
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