WLFI’s Own Treasury Just Drained Its Stablecoin Pool Dry, Here’s Why It Matters
BeInCrypto
World Liberty Financial's treasury borrowed enough USD1 to exhaust its lending pool, driving interest rates up and raising liquidity concerns for other users.Summary
World Liberty Financial (WLFI) has effectively drained the USD1 stablecoin pool on the Dolomite lending platform by borrowing 50.44 million USD1 against its own governance tokens. This action pushed pool utilization past 100%, causing lending APRs to surge to over 35%. While the project claims the move supports its ecosystem, analysts warn that the artificial scarcity creates significant withdrawal risks for other lenders and highlights the danger of potential liquidation cascades if the WLFI token price declines.
(Source：BeInCrypto)