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 partnerships success. This makes a potential total commitment of $10 million.

Fuels Frax Finances Bet on WLFI

Frax Finance claims that World Liberty Financial (WLFI), which is built on Aave, is well-positioned to benefit from the Trump administrations 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 Finances 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 FRAXs frxUSD stablecoin as collateral within WLFIs 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 WLFIs 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 administrations 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 projects 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 DAOs 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.