The price of Aave (Aave) -token tumbled by over 8% Saturday after rumors that the decentralized funding (Defi) protocol would receive another token distribution from the World Liberty Financial (WLFI), a defi platform supported by members of US President Donald Trump’s family.
“The WLFI team told Wublockchain that the claim that” Aave will receive 7% of the total WLFI -Token supply, “is fake and fake news,” Blockchain reporter Colin Wu said, triggering a debate about the rumor and the token event on social media.
WU referred to a WLFI Society proposal from October 2024, outlining a scheme in which Aave -Decentralized Autonomous Organization (DAO), responsible for the management of the protocol, would receive 7% of WLFI management token’s circulating supply and 20% of protocol submissions generated by the WLFI installation on the Aave V3.
Aave founder Stani Kulechov called the proposal “The Art of the Deal” on Saturday, and in a separate post the signal was that the proposal was still valid. After rumors, Aave’s token dropped from about $ 385 to a low level of $ 339 before rebounded to about $ 352.
Cointelegraph reached out to the World Liberty Financial and Aave spokespersons, but received no response at the time of publication.
Rumors of the event between Aave and World Liberty come in the midst of a renewed interest in defi and growing institutional involvement in crypto -niche.
Related: $ 70b Defi Protocol Aave going live on Aptos in Ecosystem Expansion
The Defi sector is increasing when institutions notice
The total value LOCKED (TVL) in defi-protocols is currently over $ 167 billion, according to Defillama, and is constantly approaching over $ 212 billion from December 2021.
Defi Tvl increased sharply following the results of the US election in 2024 in anticipation of a friendlier legislative climate for cryptocurrencies in the country.
Institutional investors, including banks, asset managers, companies and financial service companies, have become more and more involved in crypto and defi and create many of the stories during the current market cycle.
This involvement has given rise to a debate among the crypto community on interventions in government provisions on permitted protocols and the potential capture of defi from traditional financial institutions.
Magazine: How Ethereum Treasury Companies could trigger ‘Defi Summer 2.0’