Summary
- World Liberty said it is repaying $25 million of USD1 tied to its token-backed borrowing position on a DeFi protocol.
- World Liberty said it borrowed a total of $75 million in USD1 and USDC against about 5 billion WLFI tokens, and that about $40 million of the funds was moved to Coinbase Prime.
- A DeFi analyst said WLFI liquidity is limited and that prices could fall sharply if tokens equal to about 5%% of total supply enter the market.
Forecast Trend Report by Period
World Liberty Financial, the Trump family-backed cryptocurrency project, said it has partially repaid borrowings tied to a token-collateralized position on a decentralized finance, or DeFi, protocol, seeking to calm market concerns over potential liquidation.
World Liberty wrote on X on July 11 that it repaid $15 million of USD1 from its WLFI market position two days earlier and made an additional $10 million repayment that day.
The post came as community concerns grew over the project's large token-backed borrowing position.
World Liberty had previously deposited about 5 billion WLFI tokens on Dolomite and borrowed about $75 million of USD1 and USDC against that collateral. About $40 million of those funds was moved to Coinbase Prime.
Market concerns have persisted. One DeFi analyst argued that the position would be difficult to unwind without disrupting the market if it nears its liquidation threshold. With WLFI liquidity limited, the analyst said, tokens equal to about 5% of total supply entering the market could trigger a sharp price drop.
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.
