Gastronomic-Paradise

AAE's value plummets following WLFI's report that the token deal is baseless rumor.

Uncertainty about Aave's governance agreement with WLFI led to a drop in its token value, as contrasting reports cast doubt on whether the collaboration would actually take place.

, and Administrator

2025 September 8 . 11:11 AM

1 min read

Aave declines following report from WLFI suggesting Token transaction is "false news"

AAE's value plummets following WLFI's report that the token deal is baseless rumor.

In the world of decentralised finance (DeFi), rumours can often send shockwaves through the crypto community. Such was the case with the recent drop in the value of Aave's native token, AAVE. The drop, allegedly, was due to a rumour about a planned deal with DeFi protocol World Liberty Financial (WLFI) not proceeding as anticipated.

However, it appears that these rumours have been dispelled. Aave founder Stani Kulechov reaffirmed that the governance proposal with World Liberty Financial (WLFI) was approved by both the Aave Decentralized Autonomous Organization (DAO) and endorsed by WLFI.

The governance proposal, approved by the Aave DAO in October 2024, granted Aave approximately 7% of WLFI's total token supply and 20% of the protocol fees generated by WLFI's deployment on Aave v3. The snapshot vote of this proposal passed on December 13, 2024, with an impressive 797% of the required quorum reached.

In response to the situation, Stani Kulechov tweeted "The Art of Deal," indicating his confidence in the deal's execution. Unfortunately, a misleading announcement about the Aave-AAVE token swap with World Liberty Financial circulated, which the Aave team declared as false and fake news.

Blockchain reporter Colin Wu posted a tweet that caused some confusion, suggesting that the WLFI team labeled the claims about the deal as "false" and "fake news." However, it's important to note that this tweet may have been misunderstood, as it was in response to a different, unrelated claim.

For those interested in staying updated on such news, subscribing to the Unchained Daily newsletter provides these updates for free in your email. As the saying goes, "Knowledge is power," and in the fast-paced world of DeFi, staying informed is crucial.