Frax Finance has announced a strategic $5 million investment in World Liberty Financial (WLFI), a DeFi platform linked to former US President Donald Trump. This move aims to solidify Frax's position within the "Made in USA" DeFi ecosystem. The proposal includes a potential additional $5 million investment contingent on the partnership's success, marking a possible total commitment of $10 million.

WLFI, built on Aave, is poised to benefit from the Trump administration's pro-crypto stance, with partnerships involving Chainlink and Ethena Labs. Frax Finance plans to integrate its frxUSD stablecoin as collateral within WLFI, expanding its reach and influence in governance decisions. With WLFI's valuation rising from $1.5 billion to $5 billion, the investment holds promise for substantial growth, aligning with WLFI's mission to promote mass DeFi adoption in the US.