Chaos Lab: WLFI team conducts large-scale cyclical lending, collateral utilization rate approaches the limit

ME News Report, April 13 (UTC+8), Chaos Labs recently pointed out in a tweet that the World Liberty Finance team has recently significantly increased lending operations on the Dolomite protocol, causing the WLFI token collateral utilization rate to approach the 510 million token limit. Among them, two multi-signature wallets (0x5be9 and 0x44a6) are the main participants: 0x44a6 collateralized 300 million WLFI tokens (approximately $242 million) and lent out about $40.7 million in stablecoin USD1; while 0x5be9, through a cyclic lending structure, lent out $111 million USD1 and $89 million USDC, and continued to use USD1 for re-collateralizing and borrowing USDC. Currently, WLFI’s price would need to drop about 75% to trigger liquidation. The World Liberty Finance team has repaid about $10 million USD1 and stated they will add collateral as needed. As of now, World Liberty Finance accounts for 82.7% of the total supply and 85.3% of the total lending on Dolomite. This situation is still developing. (Source: MLion)