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 borrowing operations on the Dolomite protocol, causing the WLFI token collateral utilization rate to come close to the 510 million token ceiling. Among them, two multi-signature wallets (0x5be9 and 0x44a6) are the main participants: 0x44a6 collateralized 300 million WLFI tokens (about $242 million) and borrowed approximately $40.7 million in the stablecoin USD1; while 0x5be9, through a circular borrowing structure, borrowed $111 million in USD1 and $89 million in USDC, and continues to use USD1 to re-collateralize and borrow USDC again. In the current situation, the WLFI price would need to drop by about 75% for liquidation to be triggered. 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 borrowing. This situation is still developing. (Source: MLion)