World Liberty Financial (WLFI) has proposed a governance plan locking 62.2 billion WLFI tokens for two years, with different vesting schedules for advisors and early supporters. This aims to enhance long-term governance in DeFi and includes a token burn requirement.

According to Arkham data, World Liberty Financial (WLFI) newly minted 25 million USD1 through BitGo Custody, destroyed 3 million USD1, and increased the circulating supply net by 22 million USD1. This expansion is consistent with the amount of loan repayments, causing the USD1 lending pool utilization rate to approach 100%.

Risk management firm Chaos Labs disclosed that the Trump family’s crypto project WLFI has rapidly expanded its lending volume on Dolomite, with collateral utilization nearing its cap. Currently, WLFI’s collateral size far exceeds the transaction volume of a certain CEX, and the team has already repaid about 10 million USD1, with funds highly concentrated on-chain.

WLFI CEO Zach Witkoff responded to a critical article, pointing out that the article’s author is not affiliated with WLFI and that multiple pieces of information in the piece are incorrect, including confusing WLFI with the Trump meme coin and having no connection to CIC digital. He emphasized that WLFI’s main product is stablecoins and urged people to do thorough research before publishing.

WLFI repaid 25 million USD1 loans on Dolomite, restoring liquidity to $35 million, with a deposit interest rate of 10.43%. Currently, WLFI still has $162 million in outstanding borrowings, with collateral of 4.99 billion WLFI tokens.

WLFI’s official response to market concerns says there is no liquidation risk, and that it relies on adding collateral to handle market volatility. Current annualized revenue is about $159.5 million, and it is set to buy back 435 million WLFI tokens. Next week, it will put forward a governance proposal to discuss unlocking early locked tokens and upgrading the USD1 feature.

A crypto project founded by the Trump family, WLFI, has drawn market attention to liquidity risk and alleged insider connections through lending facilitated by Dolomite. WLFI pledges stablecoins USD1 and platform tokens, borrows $31.4 million, and moves it to a CEX that is suspected to be used for exchanging it into fiat currency. WLFI has a high concentration level and also carries liquidation risk. On-chain data shows that WLFI has recently transferred a large amount of tokens, with the destination unclear, and has not yet responded regarding the transactions.

Techno Revenant staked HYPE for 6 months to earn 2.4 million HYPE, worth $93.7 million, but it’s still unclear whether he will sell or restake. Earlier, he profited about $250 million by investing in the Trump family project WLFI.

World Liberty Financial borrowed more than $50 million in stablecoins on the Dolomite platform in the short term, drawing attention from the DeFi market. WLFI deposited large amounts of governance tokens as collateral, causing the liquidity pool utilization rate to exceed 100%, leaving liquidity nearly exhausted and pushing interest rates sharply higher. Analysis suggests this move could be intended to meet liquidity demand or to increase on-chain activity; investors should carefully assess the risks.

Gate News message: On April 8, according to @ai_9684xtpa monitoring, the WLFI strategic reserve address deposited 3 billion WLFI into Dolomite over the past 5 days, and lent out 50.44 million USD1 while putting USD1 on loan short. Currently, the borrowing interest rate on Dolomite is 30%, and it has already been fully borrowed out; liquidity shows as -232k USD1.