Trump Family-Linked Stablecoin Unveils Live Reserve Tracker After De-Pegging Scare

World Liberty Financial (WLFI), the issuer of the $4.7 billion USD1 stablecoin which has ties to President Donald Trump's family, has implemented a real-time, on-chain proof-of-reserve system using Chainlink Runtime Environment. This upgrade replaces previous monthly attestation reports and allows users to monitor the stablecoin's supply, reserve backing, and collateralization ratio across five networks, confirming $4.7 billion in short-term U.S. government treasuries and cash equivalents held by custodian BitGo.

This move follows a recent security scare where USD1 briefly lost its dollar peg, dropping to $0.994. The WLFI team attributed the de-pegging to a "coordinated attack" involving hacked co-founder accounts and paid influencers spreading fear, uncertainty, and doubt (FUD). However, analysts note that the admission of compromised executive accounts reveals significant operational security vulnerabilities, especially given the protocol's high-profile political connections.

While the core redemption mechanism remained functional, preventing a catastrophic collapse, the new transparency dashboard still lacks granularity regarding the immediate liquidity profile of underlying assets during a bank run and does not mitigate risks from smart contract vulnerabilities.

(Source：BeInCrypto)