The $WLFI token under the Trump Group is really impressive with this wave of self-borrowing operations. Don't touch it~

The project team directly used nearly 5 billion WLFI tokens to collateralize and borrow on the Dolomite platform, purely borrowing from themselves, lending to themselves.

At its peak, they borrowed over $75 million, directly pushing the USD1 pool to 100% utilization, making liquidity negative, and users couldn't even withdraw. Deposit rates once soared above 35%.

Although some debts have been repaid now, about $162 million remains, and liquidity has barely recovered, with interest rates falling back to around 10%.

The team claims it's normal operation with no liquidation risk, but the community isn't buying it. The collateral is highly concentrated, with related parties involved—classic leverage scheme of borrowing without selling tokens. Over $40 million has been transferred to Coinbase Prime.

Even more concerning, 80% of the users who initially invested in WLFI haven't unlocked their funds, effectively locking depositors' assets and making the tokens inaccessible.

Plus, WLFI itself has poor liquidity, so if the price continues to fall, it could trigger a chain reaction of liquidations, leading to bad debt on the protocol, and ultimately, ordinary depositors will bear the losses.

If this decline continues, whether WLFI can hold its current support levels depends on cautious waiting for governance voting results to determine the protocol's future direction. Otherwise, WLFI might really be wiped out to zero. 😅
#Gate广场四月发帖挑战 @Gate广场_Official