Summary
- WLFI said recent claims of a crisis were unfounded, adding that there is no liquidation risk tied to its collateralized loans.
- WLFI said the run rate for its proprietary stablecoin USD1 is about $159.5 million, highlighting the competitiveness of its stablecoin yields.
- WLFI said it completed a buyback of more than 435.3 million WLFI tokens over the past six months, spending about $65.58 million, and plans to release early holders’ tokens in stages through a governance proposal to unlock locked tokens.
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World Liberty Financial, the decentralized finance project led by US President Donald Trump’s family, rejected recent claims that a large loan position on the platform faces a liquidation threat.
In a post on its official X account on April 9, WLFI said market concerns about collateralized lending on WLFI Market were based on misinformation. The project said it is one of the largest borrowers using WLFI as collateral to borrow stablecoins, but remains far from its liquidation point. It added that even in an extreme market swing, it has ample capacity to post additional collateral and faces no risk of liquidation.
WLFI said the project itself participates as a borrower in order to offer other users higher stablecoin yields. According to the announcement, the run rate for USD1, its proprietary stablecoin, is about $159.5 million.
The project also disclosed the scale of its buybacks over the past six months. WLFI said it repurchased more than 435.3 million WLFI tokens at an average price of $0.1507, spending about $65.58 million.
WLFI also outlined a compensation plan for early investors. It said it will post a governance proposal on its forum next week to gather community feedback on unlocking locked tokens. The project then plans to put the measure to a formal vote and release early holders’ tokens in stages.
Doohyun Hwang
cow5361@bloomingbit.ioKEEP CALM AND HODL🍀
