Back
WLFI Says WLFI Markets Borrowing Position Faces No Liquidation Risk

WLFI Says WLFI Markets Borrowing Position Faces No Liquidation Risk

According to WLFI’s official statement, the project said its collateralized borrowing on WLFI Markets is not close to liquidation as WLFI token volatility and governance plans for locked tokens draw renewed scrutiny.

USD1

Fact Check
The strongest available evidence is the fetched PANews article, 'WLFI澄清其借贷头寸不存在清算风险，并称解锁早期代币提案将于下周提交 | PANews', which explicitly states all major elements of the claim: WLFI said its borrowing position had no liquidation risk; USD1 annualized revenue reached $159.5 million; token buybacks occurred; gas-free transfers were enabled; and a governance proposal for phased WLFI unlocks would be submitted next week. This article also links to the official WLFI X post at https://x.com/worldlibertyfi/status/2042366935329853762, and media tracing independently surfaced that same URL as the upstream source, which supports provenance. However, direct fetching of the X posts failed, and web/X corroboration searches returned no additional evidence in this run. So the claim is probably accurate as a report of WLFI's own statement, but confidence is limited because the primary source could not be directly fetched.
    Reference: 12
Summary

WLFI said in an official announcement that its borrowing position on WLFI Markets faces no liquidation risk despite market backlash and a sharp decline in the WLFI token price, which fell about 13% over 24 hours to an all-time low of $0.080. The project confirmed it is one of the largest suppliers and borrowers on WLFI Markets, that WLFI was posted as collateral, and that stablecoins were borrowed, but stated it is nowhere near liquidation and would add more collateral if markets moved sharply against the position. The statement came after online reports alleged that roughly 5 billion WLFI tokens were used as collateral to borrow about $75 million in stablecoins through Dolomite, with more than $40 million reportedly sent to Coinbase Prime, alongside concerns about withdrawal pressure in USD1 pools and WLFI’s large share of Dolomite liquidity. WLFI also said it plans to post a governance proposal next week to unlock locked tokens for community input before a formal vote, and stated that USD1 includes compliance-grade controls with balances, approvals, and integrations carried over without migration or disruption.

Terms & Concepts
  • Governance proposal: A formal measure submitted for community review or voting to change protocol rules, token settings, or product features.
  • Token unlocks: The release of previously restricted tokens so they can become transferable or usable under specified conditions.
  • Stablecoins: Cryptocurrencies designed to maintain a relatively stable value, often by being pegged to a fiat currency such as the U.S. dollar.