World Liberty Financial: Investor’s Guide 2024

What is World Liberty Financial?

World Liberty Financial (WLFI) is a cryptocurrency and decentralized finance (DeFi) platform linked to President Donald Trump’s immediate family and launched in September 2024. 

World Liberty Financial aims to create a decentralized crypto banking system, allowing users to borrow and lend cryptocurrencies without the traditional middleman. By leveraging blockchain technology, the platform allows users to bypass banks and financial technology. 

What are the key features of World Liberty Financial? 

In a post on Truth Social, President Trump promised that World Liberty Financial would liberate the average Americans from big banks and the financial elite. Let’s walk through some of the benefits that World Liberty Fi offers. 

• Vision: The project described its mission as ‘inspired by the vision of Donald J. Trump’ and ‘democratizing access to financial opportunities while fortifying the global status of the US dollar’. The project seeks to use the Trump brand to introduce and onboard new users to Web3. 
• DeFi Lending and Borrowing: WLFI allows users to lend and borrow cryptocurrency assets through a decentralized protocol. 
• WLFI Token: The platform has introduced its own token, WLFI, which gives holders voting rights on platform-related matters, adding an element of community-driven governance. It’s important to note that these tokens do not give holders the right to protocol revenues. 
• Non-Transferable Tokens: WLFI tokens are non-transferable and cannot be bought or sold, limiting their use to governance only for the time being. The site’s terms and conditions say that tokenholders can vote to change these rules — but only after at least 12 months have passed since the initial token sale. 
• Exclusive Access for Accredited Investors: Currently, WLFI is only available to accredited investors in the US as well as non-US investors. Accredited investors are defined as those with a $1 million net worth and an individual income of at least $200,000. 

What’s the competitive landscape for World Liberty Financial? 

It’s important to note that established DeFi protocols like Aave and Compound already offer access to decentralized borrowing and lending. 

Here are some key differences between these protocols and World Liberty Financial: 

• Platform Architecture: WLFI operates on Aave’s v3 protocol, using Aave’s established infrastructure rather than developing a new one. This shows that the platform is secure and stable but also suggests a lack of innovation. 
• Token Functionality: While tokens from platforms like Aave (AAVE) and Compound (COMP) are freely tradable and come with various benefits, WLFI’s tokens are strictly non-transferable and do not come with a right to protocol revenues. 
• Token Distribution: WLFI’s distribution heavily favors insiders, with 70% of the supply held by insiders. This is unusual compared to most DeFi projects, which aim for broader token distribution. In addition, 75% of protocol revenues go to DT Marks DEFI LLC, a company connected to President Trump. 
• User Base: While Aave and Compound cater to general audiences, WLFI is restricted to accredited investors in the US, significantly narrowing its reach.
• Security: Built on Aave’s infrastructure, WLFI inherits some of Aave’s security features. However, as a newer platform, WLFI’s own security protocols have yet to be thoroughly tested or audited.

What are the challenges that WLFI has faced since launch? 

WLFI has encountered several hurdles since its launch:

• Limited Sales: Initial sales were lower than expected, with only 4.24% of available tokens sold on the first day.
• Criticism and Skepticism: Some have questioned the legitimacy of the project, with critics labeling it a potential "grift." Trump supporter and venture capitalist Nic Carter said this about the project, “It looks like Trump’s inner circle is just cashing in on his recent embrace of crypto in a kind of naive way, and frankly it looks like they’re burning a lot of the good will that’s been built with the industry so far.” 
• Technical Issues: Website difficulties have caused issues. The project’s website crashed for hours after the token first went on sale. 

Who is behind World Liberty Financial?

World Liberty Financial has high-profile backing from the Trump family. 

On the project’s gold paper (World Liberty Financial’s version of a white paper) Donald J. Trump is listed as a Chief Crypto Advocate. His three sons — Donald Jr., Eric, and Barron — are listed as Web3 Ambassadors. 

It appears that these roles are unofficial. World Liberty Financial’s gold paper also says the following. 

• "None of Donald J. Trump, any of his family members or any director, officer, employee or principal of the Trump Organization ... is an officer, director, founder, or employee of, or manager, owner or operator of Word [sic] Liberty Financial or its affiliates or the WLF Platform."

However, a note on the same page suggests that the platform will occasionally request Trump to promote the project. 

"Under the terms of the services agreement, DT Marks DEFI LLC (i) agreed to use reasonable efforts to request the owners and principals of DT Marks DEFI LLC, including Donald Trump, to promote the WLF and the WLF Protocol from time to time …” 

Other notable names include real estate investor (and Donald Trump’s nominee for Special Envoy to the Middle East) Steve Witkoff and DeFi founder Corey Caplan. 

The project’s development is managed by Chase Herro and Zachary Folkman, who previously managed the now-defunct DeFi project Dough Finance. In the past, Dough Finance ran into challenges — like a $2.1 million hack in the summer of 2024. 

Notably, 70% of WLFI’s tokens are held by insiders — including founders, team members, and support providers. As a result, many critics have called World Liberty Financial a ‘grift’ that seeks to capitalize on the Trump name.

However, a World Liberty Financial advisor has said that the “fake news media” misrepresented the initial token sale and that 63% of tokens would be released to the public.  

Where can I buy WLFI? 

Currently, WLFI tokens can only be purchased through the official World Liberty Financial website. 

What should I know before I buy WLFI? 

You should consider the following before making a purchase: 

• Accredited Investors Only: If you’re in the US, you can only buy tokens if you’re an accredited investor. 
• Non-Transferable Tokens: Remember, WLFI tokens cannot be sold or transferred. 
• Website Issues: The platform has faced technical challenges, with website crashes during the initial launch affecting early sales.

What are World Liberty Financial’s unique selling points? 

WLFI stands out in several ways:

• Political Association: WLFI benefits from its association with Donald Trump and the Trump brand. 
• Exclusive Targeting: Because WLFI is only available to accredited investors in the US, it’s positioned as a more exclusive platform. 
• USD-Pegged Focus: With an emphasis on supporting USD-pegged stablecoins, WLFI appeals to those who are interested in maintaining the U.S. dollar's dominance. 

Conclusion

For new crypto investors, WLFI provides a glimpse into the world of crypto-powered lending and borrowing. Still, it’s important to consider potential benefits and risks before investing.