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 recent tweet that the World Liberty Finance team has significantly increased lending operations on the Dolomite protocol, causing the WLFI token collateral utilization rate to approach the 510 million token cap. Among them, two multi-signature wallets (0x5be9 and 0x44a6) are the main participants: 0x44a6 collateralized 300 million WLFI tokens (approximately $242 million) and borrowed about $40.7 million worth of the stablecoin USD1; while 0x5be9, through a looped lending structure, borrowed $111 million worth of USD1 and $89 million worth of USDC, and continues to use USD1 to re-collateralize for further USDC borrowing. Under the current situation, the WLFI price would need to drop by about 75% to trigger liquidation. The World Liberty Finance team has repaid about $10 million worth of USD1 and said it will add collateral as needed. As of now, World Liberty Finance accounts for 82.7% of Dolomite’s total supply and 85.3% of total borrowing. This situation is still developing. (Source: MLion)