Tokens under the Trump Group $WLFI , this wave of self-borrowing operations is really impressive. 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 USD, directly pushing the USD1 pool to 100% utilization, making liquidity negative, users couldn't even withdraw, and deposit rates once soared above 35%.

Although some debts have now been repaid, about 162 million USD 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 simply doesn't buy it. Collateral is highly concentrated, with related parties involved—classic leverage scheme of borrowing without selling tokens. Over 40 million USD has been transferred to Coinbase Prime.

What's more concerning is that 80% of the users who initially invested in WLFI haven't unlocked their funds, meaning depositors' assets are locked, and they can't access their tokens.

Additionally, WLFI itself has poor liquidity; if the price continues to fall, it could trigger a chain reaction of liquidations, leading to bad debts in the protocol, and ultimately, ordinary depositors will bear the losses.

If this decline continues, whether WLFI can maintain its current support level 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