World Liberty Finance Expands Lending on Dolomite, Nears Collateral Limit

News Flash 2026-04-13 08:44

Chaos Labs has revealed that the Trump family project, World Liberty Finance (WLFI), has rapidly expanded its lending operations on the Dolomite platform, pushing WLFI collateral utilization close to its limit of 5.1 billion tokens. This activity is concentrated in two multi-signature addresses. Approximately 3 billion WLFI tokens have been used as collateral to borrow around $40.7 million, primarily in USD1 stablecoins. Another address has created a circular collateral structure using USD1 and USDC, with a liquidation threshold corresponding to a 75% drop in WLFI price. Currently, USD1 utilization stands at 83.4%, while USDC utilization is at 90.19%, with a borrowing rate of about 5%. Including WLFI rewards obtained through Merkl, the supply rate reaches 10.64%, with the reward program ending in three days. The WLFI collateral size exceeds Binance's tradable volume by four times, with only 20% of tokens unlocked. The remaining tokens are expected to be released by mid-April. Following recent developments, the team has repaid approximately $10 million in USD1 and indicated the ability to supplement collateral. The team currently accounts for 82.7% of Dolomite's total value locked (TVL) and 85.3% of its lending, with on-chain funds highly concentrated and the structure's purpose unclear. The situation is ongoing.

Share to:

This content is for informational purposes only and does not constitute investment advice.

Curated Series

SuperEx Popular Science Articles Column

SuperEx Popular Science Articles Column

This collection features informative articles about SuperEx, aiming to simplify complex cryptocurrency concepts for a wider audience. It covers the basics of trading, blockchain technology, and the features of the SuperEx platform. Through easy-to-understand content, it helps users navigate the world of digital assets with confidence and clarity.

Unstaked related news and market dynamics research

Unstaked related news and market dynamics research

Unstaked (UNSD) is a blockchain platform integrating AI agents for automated community engagement and social media interactions. Its native token supports governance, staking, and ecosystem features. This special feature explores Unstaked’s market updates, token dynamics, and platform development.

XRP News and Research

XRP News and Research

This series focuses on XRP, covering the latest news, market dynamics, and in-depth research. Featured analysis includes price trends, regulatory developments, and ecosystem growth, providing a clear overview of XRP's position and potential in the cryptocurrency market.

How do beginners trade options?How does option trading work?

How do beginners trade options?How does option trading work?

This special feature introduces the fundamentals of options trading for beginners, explaining how options work, their main types, and the mechanics behind trading them. It also explores key strategies, potential risks, and practical tips, helping readers build a clear foundation to approach the options market with confidence.

What are the risks of investing in cryptocurrency?

What are the risks of investing in cryptocurrency?

This special feature covers the risks of investing in cryptocurrency, explaining common challenges such as market volatility, security vulnerabilities, regulatory uncertainties, and potential scams. It also provides analysis of risk management strategies and mitigation techniques, helping readers gain a clear understanding of how to navigate the crypto market safely.