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

ME News message. On April 13 (UTC+8), Chaos Labs pointed out in a recent tweet that the World Liberty Finance team has recently significantly increased its borrowing activity on the Dolomite protocol, causing the WLFI token collateral utilization rate to approach a cap of 510 million tokens. Among them, two multi-signature wallets (0x5be9 and 0x44a6) are the main participants: 0x44a6 collateralized 300 million WLFI tokens (approximately $242 million), borrowing about $40.7 million in stablecoin USD1; while 0x5be9, through a circular borrowing structure, borrowed $111 million in USD1 and $89 million in USDC, and continued to use USD1 to re-collateralize and borrow USDC. Under the current conditions, the WLFI price would need to drop by about 75% to trigger liquidation. The World Liberty Finance team has repaid about $10 million in USD1 and stated that 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 its total borrowings. This situation is still developing. (Source: MLion)