Aave tumbles following rumors regarding World Liberty token allocation

Aave's AAVE token fell more than 8% on Saturday after rumors that the DeFi protocol would receive a different token allocation from World Liberty Financial (WLFI), a DeFi platform backed by members of Donald Trump's family. Blockchain reporter Colin Wu said the WLFI team told WuBlockchain that the claim that Aave will receive 7% of the total WLFI token supply is false. The rumor referenced an October 2024 WLFI community proposal that would give the Aave DAO 7% of the WLFI governance token's circulating supply and 20% of protocol revenues from the WLFI deployment on Aave v3. Aave founder Stani Kulechov called the proposal "the art of the deal" and signaled its terms were still valid, and the token fell from about $385 to a low of $339 before rebounding to about $352.