December 13, 2024

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WLF is acquiring ETH, cbBTC, Chainlink (LINK) and Aave (AAVE) tokens

World Liberty Finance, the DeFi project launched by incoming US president Donald Trump, has been seen acquiring considerable amounts of ETH, cbBTC, Chainlink (LINK) and Aave (AAVE) tokens on-chain via CoW Protocol over the past two days.
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    World Liberty Finance, the DeFi project launched by incoming US president Donald Trump, has been seen acquiring considerable amounts of ETH, cbBTC, Chainlink (LINK) and Aave (AAVE) tokens on-chain via CoW Protocol over the past two days. Currently, the entity holds more than $56M in ETH, $10M in cbBTC, $2.2M in LINK and $1.46M in AAVE. So far, the entity is up on all of their recent purchases, with the most notable being a ~21% return on their AAVE investment so far.

    The selection of these specific assets suggests a strategic alignment with the infrastructure that powers the World Liberty Finance protocol itself. Since the project is technically a "fork" (a modified copy) of Aave, acquiring substantial holdings of the AAVE token effectively serves as a form of vertical integration, allowing the project to participate in the governance decisions of the lending platform it emulates. Similarly, the accumulation of Chainlink (LINK) is likely a functional hedge; as a DeFi lending protocol, World Liberty Finance relies heavily on Chainlink’s decentralized "oracles" to provide accurate price data for liquidations, making the token a critical operational asset rather than a mere speculative bet.

    World Liberty Finance entity on Arkham
    World Liberty Finance entity on Arkham

    Furthermore, the choice to execute these trades via CoW Protocol rather than standard decentralized exchanges (DEXs) demonstrates a high level of sophistication in treasury management. CoW Protocol utilizes batch auctions to match buyers and sellers directly ("Coincidence of Wants") or routes trades through professional solvers. This method protects large orders from "MEV bots"—predatory algorithms that monitor the blockchain to front-run large transactions—ensuring that the project’s multimillion-dollar acquisitions didn't suffer from massive price slippage or hidden costs during execution.

    Some of World Liberty Finance’s purchases of LINK and AAVE tokens
    Some of World Liberty Finance’s purchases of LINK and AAVE tokens

    The addresses also hold another $3.24M USDT, which has yet to have been deployed. The recent purchases have revitalized interest in the DeFi sector, with many investors positioning themselves for the positive tailwinds ahead for these related tokens.

    Finally, the inclusion of cbBTC (Coinbase Wrapped Bitcoin) signals a clear preference for regulated, US-centric infrastructure. Unlike the more widely used Wrapped Bitcoin (WBTC), which is managed by a custodian that recently underwent ownership changes involving non-US entities, cbBTC is issued by the publicly traded, US-based exchange Coinbase. For a project spearheaded by a US President who campaigned on American financial sovereignty, opting for a compliant, onshore Bitcoin wrapper reinforces the administration's broader narrative of bringing digital asset innovation back within the American regulatory perimeter.

    Arkham

    The Arkham Research Team comprises analysts and engineers who worked at Tesla, Meta, and Apple, alongside alumni from the University of Cambridge, Imperial College London, UC Berkeley, and other institutions.

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    Arkham
    The Arkham Research Team comprises analysts and engineers who worked at Tesla, Meta, and Apple, alongside alumni from the University of Cambridge, Imperial College London, UC Berkeley, and other institutions.
    Information provided herein is for general educational purposes only and is not intended to constitute investment or other advice on financial products. Such information is not, and should not be read as, an offer or recommendation to buy or sell or a solicitation of an offer or recommendation to buy or sell any particular digital asset or to use any particular investment strategy. Arkham makes no representations as to the accuracy, completeness, timeliness, suitability, or validity of any information on this website and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. Digital assets, including stablecoins and NFTs, are subject to market volatility, involve a high degree of risk, can lose value, and can even become worthless; additionally, digital assets are not covered by insurance against potential losses and are not subject to FDIC or SIPC protections. Historical returns are not indicative of future returns.