Trump-Backed WLF: DeFi Revolution or Political Investment?

World Liberty Financial (WLF), a decentralized finance (DeFi) project, has garnered significant attention in recent months, particularly for its high-profile backing and aggressive moves in the crypto space. Led by US President Donald Trump, WLF has swiftly accumulated digital assets, forged partnerships with prominent entities like Chainlink and Ethena Labs, and made headlines with its $470,000 purchase of ONDO tokens.

However, WLF's rapid growth has also raised questions about its decentralized nature and governance structure. The project claims to be decentralized, yet its structure appears centralized, with a governance token (WLFI) that cannot be traded and a revenue model that allocates 75% of net profits to a Trump-affiliated entity. Critics argue that this model resembles a politically branded investment vehicle more than a DeFi revolution.

Adding to the intrigue, WLF's co-founders, Chase Herro and Zachary Folkman, previously ran a struggling DeFi lending platform called Dough Finance. Herro's connection to the Trump family, through his father, a close Trump ally, further complicates the project's web of personal connections and political ties.

So, what exactly is WLF building? Where is the money going? And, most importantly, is this a project to watch or just another wave crashing against the established DeFi and legacy finance systems? Let's dive in.

World Liberty Financial is structured as a DeFi platform that enables users to borrow, lend, and invest in digital assets without relying on traditional banking systems. The project's mission is to "make crypto and America great" by promoting the widespread adoption of stablecoins and DeFi, with a strong focus on positioning US-pegged assets as the foundation for global financial settlements.

At its core, WLF seeks to provide an alternative to traditional financial institutions by eliminating intermediaries, lowering transaction costs, and enhancing financial accessibility for its users. The platform was launched in September 2024 by DT Marks DEFI and WLF Holdco, with the Delaware-based WLF Holdco corporation holding 100% interest in World Liberty Financial, operating and controlling the protocol.

The heart of the platform is its governance token, WLFI. Unlike typical cryptocurrencies, WLFI tokens are solely for governance (voting on platform decisions) and are deliberately nontransferable after purchase.