Wu Blockchain (@WuBlockchain): WLFI Leverage Loop Near Limit, Dominates Dolomite Borrowing
Estimated coin impact
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Impact unavailable
WLFI Leverage Loop Near Limit, Dominates Dolomite Borrowing Chaos Labs reported that World Liberty Finance (WLFI) has rapidly expanded borrowing on Dolomite, pushing collateral use near its 5.1B cap across two multisigs; ~3B WLFI backs ~$40.7M in stables (mainly USD1), with a USD1–USDC looping structure and ~75% liquidation threshold; USD1 utilization is 83.4%, USDC 90.19%, borrow rates ~5%, and supply rates 10.64% including Merkl rewards (ending in 3 days); WLFI collateral exceeds Binance tradable supply by 4x, only 20% unlocked; the team repaid ~$10M and may add collateral, accounting for 82.7% of TVL and 85.3% of borrowing, with activity highly concentrated and purpose undisclosed. https://x.com/chaoslabs/status/2043381288640409825?s=46