The interest in U.S.-origin crypto initiatives has been fueled by the election of Donald Trump as the 47th President of the United States.
Frax Finance, a decentralized finance (DeFi) platform, has proposed a $5 million investment in World Liberty Financial (WLFI), a DeFi platform that is closely associated with Donald Trump's administration.
The move is aimed at positioning FRAX as a leader in the growing U.S.-based DeFi ecosystem. A potential follow-up investment of $10 million is also being considered, contingent on the success of the partnership.
The interest in U.S.-origin crypto initiatives has been fueled by the election of Donald Trump as the 47th President of the United States. The current administration has shown a great interest in the development of blockchain and cryptocurrencies.
World Liberty Financial, a DeFi project that is closely aligned with Trump’s agenda of a crypto economy centered around the United States, has become a major player in this regard.
Frax Finance, which focuses on the algorithmic stablecoin FRAX, plans to incorporate frxUSD into the WLFI system. The proposal focuses on how the business can leverage on the governance structure, distribution network and partnership of WLFI.
As per the proposal, WLFI aims to bring millions of Americans into DeFi and help US based crypto projects. The first $5 million investment would enable FRAX to purchase WLFI tokens and thus become shareholders in its governance framework. A second phase of up to $10 million may be available if there is evidence of achievement of the initial goals.
WLFI's Expanding Influence in U.S.-Based DeFi
Although Trump expressed support for cryptocurrency and blockchain technologies during his campaign, he has not yet officially mentioned Bitcoin or any other virtual currency since taking the oath of office. This has raised concerns, especially considering that his administration was known to be supportive of U.S.-based digital currency projects.
However, WLFI's activities appear to be in line with this pro-crypto agenda, and the platform is expanding rapidly in the DeFi space.
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