The Trump family DeFi fund, World Liberty Financial, keeps buying Ethereum (ETH). After a week of accumulation, the fund’s holdings are at record levels.
World Liberty Financial (WLFI), the Trump family DeFi fund, keeps acquiring Ethereum (ETH) during market dips. ETH is now the biggest holding for the fund, mostly held liquid and partially used for staking. The latest purchase was for $10M to buy another 3,247 ETH during the latest price dip. The purchase arrives after the fund previously spent $20M to acquire 3,001 ETH and 95 WBTC over the weekend.
The new ETH purchase comes soon after a whale bought WLFI tokens valued at $10M for Tether (USDT). The inflow of whale funds, possibly from other crypto projects and platforms, is bringing WLFI closer to its sales target. For now, the token remains locked, with the potential to be held for at least a year. Speculations range from WLFI forever remaining a locked voting token, to being unlocked once there is enough regulatory clarity.
After a week of buying the dip, World Liberty Fi owns 59.389M ETH, with another 19.40K stETH for passive income. The fund’s portfolio has expanded to $394M based on Arkham Intelligence reporting, after buying a mix of WBTC, LINK, and other relatively older coins and tokens. WLFI even added TRON (TRX) in a series of purchases. Alternative data pin the portfolio at $405.39M, with a small recent gain of 1.54%.
World Liberty Fi aims to preserve the value of its assets, while participating in the Ethereum ecosystem. ETH is also the most widely received token for buying WLFI, with almost constant inflows. While the fund did not launch its initial target of raising $300M, it has still built a sizeable crypto portfolio, by adding funds beyond the inflow of investor purchases.
The fund has already sold 23.37B WLFI tokens out of a target for 25B. Despite the ongoing retail activity, most of the WLFI sold went to whale investors and to the directed buying of Justin Sun as one of the fund’s biggest backers.
World Liberty Fi buys despite ETH pessimism
World Liberty continued accumulating ETH despite the token’s sliding value against Bitcoin (BTC). The fund times the purchases to buy dips and corrections, despite ETH dominance near a historically low range. ETH decreased its dominance to as low as 10.2%, as traffic shifted to other networks, especially Solana.
ETH traded at $3,193.33, within its usual range, currently looking at expectations of a traditionally strong Q1. The asset retains its utility and value locked, but gets questioned on real-time economic liveliness as trading and DeFi shift to other chains.
The fund turned into a long-term holder, while carrying unrealized losses for most of its history. However, most of the selected assets in the portfolio are recovering, and World Liberty Fi is within $10M of breaking even. The fund is a relatively conservative investment and much smaller in its impact compared to the Official Trump (TRUMP) meme token.
World Liberty Fi bets on the Ethereum DeFi ecosystem
The Ethereum DeFi ecosystem still locks in over $63B in total value, including LidoDAO’s staked ETH. Uniswap V3 is still the key DEX smart contract, while Aave remains the top lending protocol.
World Liberty Fi will work as an instance of Aave V3, locking up a part of Aave’s earnings potential. Currently, it is unknown when World Liberty Fi would launch its vault, but the success may be tied to the overall performance of Ethereum-based DeFi.
Aave itself locks more than $18B in its vaults, carrying collaterals from other projects like the Sky Ecosystem and Ethena. The size of World Liberty Fi would be a fraction of that market, depending on collaterals and activity allowed.
If the performance of Aave is taken into account, World Liberty Fi could become a fee producer for its lending activity. Aave posted earnings for January at $8.75M, even after paying out $3.7M in token incentives. Based on Token Terminal data, Aave-based lending is one of the leading fee-generating apps, which may grant World Liberty Fi an earnings-positive status.
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Source: https://www.cryptopolitan.com/world-liberty-fi-buys-dip-eth-accumulation/