World Liberty Financial (WLFI), the DeFi initiative tied to President Donald Trump, has made substantial investments of over $11 million into Ethereum and a brand new stablecoin challenge this week.
These strikes replicate WLFI’s rising ambition to construct out core blockchain infrastructure and deepen its presence throughout the digital asset ecosystem.
Falcon Finance
On July 30, WLFI announced that it invested $10 million in Falcon Finance, an artificial stablecoin protocol.
In keeping with the assertion, the capital can be used to develop Falcon’s multi-chain interoperability, enhance good contract modules, and assist liquidity-sharing mechanisms between Falcon’s USDf and World Liberty Financial’s USD1 stablecoin. Notably, USD1 can be getting used as collateral inside Falcon’s protocol.
Falcon’s USDf stablecoin just lately crossed $1 billion in circulating provide, spotlighting rising demand for decentralized dollar-pegged belongings.
In contrast to conventional stablecoins, USDf operates by means of an overcollateralization mannequin that adjusts for real-time danger. This enables it to simply accept a wide range of digital belongings as collateral whereas sustaining worth stability.
In the meantime, USD1 enhances USDf by serving as a fiat-redeemable asset. It’s backed by a reserve of US greenback deposits, authorities cash market funds, and different short-term money equivalents, providing a further layer of belief and liquidity.
Zak Folkman, co-founder of WLFI, mentioned the partnership aligns with the challenge’s broader ambition to reshape digital finance. He added:
“By combining Falcon’s progressive collateralization mannequin with our fiat-backed strategy, we’re making a extra sturdy and versatile digital greenback infrastructure that may meet the various wants of each retail and institutional customers throughout the worldwide market.”
Ethereum investments
The stablecoin challenge funding follows WLFI’s deepening of its publicity to Ethereum with new latest purchases.
On July 29, blockchain evaluation platform Lookonchain reported that the DeFi challenge acquired 256.75 ETH in July at a mean value of $3,895 per coin for $1 million.
This follows final week’s buy of three,473 ETH, which had been then staked by way of the DeFi lending platform, Aave.
Following these purchases, World Liberty Monetary now holds roughly 77,226 ETH, price round $296 million at immediately’s costs. The agency additionally has an unrealized revenue of roughly $42 million.