Aave Faces WLFI Token Allocation Rumors, Market Impact and Clarifications

Rumors circulated on August 23, 2025, suggesting a substantial World Liberty Financial (WLFI) token allocation within Aave’s decentralized lending protocol. This caused market volatility, impacting AAVE prices despite denials of the 7% WLFI supply claim from both Aave and WLFI officials. Aave addressed these claims directly with statements and clarification. Marc Zeller, Aave’s representative, underscored his support for collaboration between the two entities. The WLFI core team also directly refuted the allocation rumors through official channels, significantly influencing investor sentiment and market activity.