The #USD1 Disconnect: Audits vs On-Chain Reality? Two very different pictures are emerging: USD1 Reserve View: Feb 17: $5.15B Feb 28:$4.71B That’s a $430M drop Feb 2026 Crowe LLP report shows $4.71B in reserves (mostly gov MMFs) held at BitGo and fully backed. The On-Chain View: 82.94% utilization on Dolomite 4.99B $WLFI collateral ( 98% of supply) WLFI is now $0.08. With a 66.67% liquidation threshold, the buffer is getting thin. At this level, even a small drawdown starts pushing the position closer to liquidation territory. The system looks solvent but structurally stressed. This isn’t a backing problem but a liquidity structure problem. If the reserves are safe but the liquidity isn’t, is #usd1 peg at risk?
Share
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.