Frax Finance Targets ‘Made in USA’ DeFi Ecosystem with Investment in Trump-Affiliated WLFI

Frax Finance has proposed a $5 million investment in $WLFI – the native token of World Liberty Financial ($WLFI), a decentralized finance (DeFi) platform tied to US President Donald Trump. The main objective behind this move is to position itself as a leading player in the “Made in USA” DeFi ecosystem.

The proposal, which was presented for community feedback, also includes an additional $5 million follow-on investment subject to the partnership’s success. This makes a potential total commitment of $10 million.

Fuels Frax Finance’s Bet on $WLFI

Frax Finance claims that World Liberty Financial ($WLFI), which is built on Aave, is well-positioned to benefit from the Trump administration’s pro-crypto stance. $WLFI is described as a key project aimed at introducing millions of Americans to DeFi, focusing on US-based initiatives and partnerships with companies like Chainlink and Ethena Labs. With $70 million invested in prominent DeFi assets such as Ethereum (ETH), Wrapped Bitcoin (WBTC), and Chainlink (LINK), $WLFI has established a notable presence in the sector in a very short duration.

In addition to Frax Finance’s strategic alignment with $WLFI to strengthen its status as a premier US-origin stablecoin, the decentralized stablecoin protocol is also co-founded by Stephen Moore, who happens to be a former economic advisor to President Trump.

By integrating FRAX’s frxUSD stablecoin as collateral within $WLFI’s platform, Frax said that the focus is also on expanding its distribution, gaining access to millions of potential users, as well as influencing key governance decisions within the $WLFI framework.

With $WLFI’s valuation already surging from $1.5 billion to $5 billion, the investment offers potential for significant appreciation, particularly if $WLFI succeeds in its mission to drive mass DeFi adoption under the Trump administration’s pro-crypto stance.

Justin Sun Deepens Ties with $WLFI

Trump unveiled World Liberty Financial in September last year to simplify access to financial services by removing intermediaries. Despite a rocky start, the project’s cumulative sales soared to $300 million by January 23, according to data compiled by Dune Analytics.

This week, Tron founder Justin Sun announced increasing TRON DAO’s stake with an additional $45 million investment, bringing the total to $75 million. Previously, Sun made a $30 million token purchase in November last year which made him the biggest stakeholder in the platform. $WLFI later confirmed his appointment as an adviser the next day.