Risk management firm Chaos Labs tweeted that the World Liberty Finance team recently significantly increased borrowing activity on the Dolomite protocol, pushing the utilization rate of WLFI collateral close to its upper limit of 510 million tokens. The activity primarily involves two multisig wallets (0x5be9 and 0x44a6): wallet 0x44a6 has pledged 300 million WLFI (approximately $242 million) to borrow around $40.7 million in stablecoins (primarily USD1); wallet 0x5be9 has employed a circular structure to borrow $111 million in USD1 and $89 million in USDC, then re-pledges the borrowed USD1 to borrow additional USDC. Under the current structure, WLFI would need to decline by approximately 75% to trigger liquidation. The team has repaid approximately $10 million in USD1 and stated it will add more collateral if needed. To date, World Liberty Finance accounts for 82.7% of Dolomite’s total supply and 85.3% of its total borrowing. The situation remains dynamically evolving.
World Liberty Finance's WLFI Team Reaches Collateral Utilization Cap on Dolomite
TechFlowShare
Summary
On-chain news firm Chaos Labs reported that World Liberty Finance (WLFI) is approaching Dolomite’s 510 million token collateral cap. Two multisig wallets, 0x5be9 and 0x44a6, are driving the surge. Wallet 0x44a6 used 300 million WLFI ($242 million) to borrow $40.7 million in stablecoins. Wallet 0x5be9 borrowed $190 million in USD1 and USDC through a circular structure. A 75% drop in WLFI’s price would trigger liquidation. The team has repaid $10 million in USD1 and stated it will add additional collateral if necessary. WLFI now controls 82.7% of Dolomite’s total supply and 85.3% of all borrowing. This activity underscores real-world asset (RWA) trends emerging on DeFi protocols.
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