World Liberty Financial (WLFI)

I just saw someone saying USD1 plunged, fearing a repeat of the CRV incident, so I checked what it was about. The cause seems to be that the project opened a pool; depositing USD1 on Dolomite earns WLFI official rewards (about 10% from WLFI tokens) + basic lending interest + oDOLO rewards. The total APR now reaches 35%, but it's not fixed—it’s floating. Then someone speculated that this APR is abnormal in a bear market and worried about a CRV‑like event. Now let’s explain what the CRV event was. In 2023, Curve was exploited via a re‑entrancy bug, repeatedly calling the contract to withdraw unlimited funds, which caused CRV to crash. Many people were watching at the time. If USD1 were to replicate the CRV event, what could happen? 1. USD1 deposited in the official pool could be drained and unrecoverable. 2. USD1 depegs: USD1 has BitGo custodial and audit backing; if it were stolen, a temporary depeg is possible. 3. APR drops: if stolen, WLFI would certainly fall, so the APR could not be maintained. 4. Cascading liquidations. So, if we’re not worried about a USD1 CRV‑like repeat, what can we do? Only hold Binance’s USD1. If something does happen—WLFI price falls, APR drops, USD1 temporarily depegs—there’s a chance of re‑pegging. All DeFi carries risk; if you’re concerned, monitor utilization, borrower concentration, and large official movements in real time, and act promptly when issues arise.

The stablecoin has been fully borrowed; this situation has occurred countless times, each time differently. This time, there are several points to watch regarding USD1. First, most of this money was borrowed by reserve addresses—what they are doing with it matters. If it can be repaid at any time, there is little problem; however, if withdrawals later need to be converted to USD, there could be issues, which warrants ongoing observation. Another concern is whether a targeted breakout could occur, liquidating the borrowing position—this happened with CRV. Theoretically this is possible, but the collateral is WLFI, a token with relatively concentrated holdings. If the team does not encounter internal problems and does not borrow out too much capital to pull the health factor very low, external price manipulation is difficult, though the risk cannot be entirely ruled out. However, this also depends on what the borrowed funds are used for; if they can be repaid promptly and the liquidation line is actively managed, the issue is not significant. Finally, whether the stablecoin USD1 itself has any issues—its collateral has already been publicly disclosed and is the most easily tracked. If the team's intention is good, such as incentivizing the use of the borrowing market, I recommend not being so aggressive with borrowing; at least, when withdrawals become difficult, repay promptly to give users sufficient liquidity for exit. This can be implemented with an automatic balancing program, while monitoring WLFI's price to preempt manipulation risk.

Reminder to everyone holding $WLFI: do you remember the $CRV by the Daming Lake back then? It all turned into the project team's big HOUSE, and when trouble arises, everyone is expected to come to the rescue 😂 https://t.co/l72kReXULd

According to Wu, as reported by MLM monitoring, the strategic reserve wallet of the Trump family's crypto project World Liberty Financial transferred 3 billion WLFI to a newly created multi‑signature wallet in the past few days, valued at about $295 million, and then deposited all of it into Dolomite as collateral, borrowing 65.4 million USD1 and 10.3 million USDC. Of these, 40.4 million USD1 and 300,000 USDC have been transferred to Coinbase Prime. In the preceding weeks, the strategic reserve wallet had already deposited 1.99 billion WLFI into Dolomite, amounting to roughly 5% of the total WLFI supply. https://t.co/TyaQrOSkUY

Friends who lived through the curve dumping tactics back then surely know what this operation means. https://t.co/KxX3hGyMUQ

USD1 deposit rate surged to 35.81%? What's going on 😲 Brief summary: The WLFI strategic reserve address deposited 3 billion WLFI into Dolomite over the past 5 days, lending out 50.44 million USD1, fully borrowing USD1. https://t.co/lETYJyDGM0 Currently, the borrowing rate on Dolomite is 30% and has been completely borrowed out, with liquidity showing -232,000 units. However, if you want to earn interest, you need to consider when USD1 can be retrieved, haha.

🔷️🦅 #WLFI is holding strong despite tough conditions. 🦅 Despite token unlocks and weak market conditions, #WLFI ( @worldlibertyfi ) continues to hold a key support zone, indicating that buyers are still active. This kind of resilience stands out, especially in a challenging market. ⚡ ✍️ If this support holds, the price could move up to test the resistance zones marked by the yellow lines. However, a loss of support may lead to increased downside volatility. 📊 ✔️ Bottom line: $WLFI is holding a critical level if support remains intact, an upward test becomes likely. 🚀 ‼️ Not financial advice. #Bitcoin #Ethereum #Crypto #Altcoins

🚨 Major development on the Aster DEX × WLFI side USD1 is no longer just a stablecoin, it is becoming a settlement layer. What’s changing? 👇 ✅ All TradFi perps on Aster → will settle with USD1 (exclusive) ✅ USDT is being replaced directly by USD1. From now on only USD1 will be used. The first RWA markets are also arriving: ✅ $CLUSD1 ✅ $XAUUSD1 ✅ $XAGUSD1 ✅ $BZUSD1 The fee side is also noteworthy 👇 ✅ 1 bps taker ✅ -0.5 bps maker And the most critical point: ✅ WLFI × Aster → token‑level integration is being discussed USD1 step by step Becoming the infrastructure at the DeFi → TradFi intersection.

🚀 New strategic partnership between WLFI and Aster DEX The USD1 stablecoin from World Liberty Financial will be used as a settlement asset for traditional futures contracts on the Aster DEX platform, covering gold, silver, and crude oil markets. Both teams are exploring deeper token integration ⚡️ #WLFI #AsterDEX #USD1 #DeFi

⚡️WLFI AND ASTER DEX ANNOUNCED PARTNERSHIP World Liberty Financial's stablecoin USD1 will be used as the settlement asset for TradFi perpetuals on Aster DEX, including gold, silver, and crude oil markets. Both teams are also exploring deeper token integration. https://t.co/u2LDDb4JzJ