Opinion: Interpreting the WLFI token distribution as Aave's intrinsic value is not accurate, and the 7% token distribution clause overvalues it.

August 24th. Mindao, the founder of the DeFi protocol dForce, expressed his viewpoints on the "Can Aave Obtain 7% of WLFI Token Total Supply" event. He stated that Aave's previous 10% revenue sharing partnership with Spark is relatively insignificant compared to the "20% revenue sharing + 7% token allocation" terms of the Aave and WLFI partnership. These terms are overly generous and do not align with the deal terms that the Trump family is willing to accept. The WLFI project is endorsed by the Trump brand. Coupled with the upcoming US crypto new policy, WLFI will be issued at USD1. The narrative of WLFI will directly transition from "crypto bank" to a combination of "Aave + Circle", significantly increasing its valuation. Aave founder Stani.eth made a high-profile retweet yesterday, stating that "at the current price, Aave's treasury will receive WLFI worth $2.5 billion, making it one of the biggest winners in this round cycle." He referred to this as the art of the deal. Subsequently, AAVE surged and touched $385. Mindao stated that some users consider the WLFI token allocation as part of Aave's intrinsic value. However, this judgment is inaccurate. Neither proposal mentioned that WLFI would allocate token distribution to Aave's treasury. It is mainly used for liquidity mining incentives, and AAVE token holders will not directly receive the allocation. It is expected that the subsequent developments of the event will lead to WLFI completely abandoning Aave and causing the contract to become obsolete naturally. Alternatively, there may be a significant reduction in the WLFI token distribution share, and the allocation will be used to incentivize the minting of USD1 loans as a targeted stablecoin minting operation subsidy.