$WLFI investors and holders might soon enter a death spiral like no other if market goes south The main problem with obscure lending markets is that they allow illiquid assets to be lent from > WLFI has a marketcap of 3B with only 75M of volume in 24h > ≈ 33% of the supply is held by the team and advisors > 5% of those have been deposited on Dolomite and ≈ 45M worth of USD1 was borrowed and sent to a CEX To long the market ? Maybe But the issue at hand is that while all the market is going up WLFI is barely keeping up with BNB If and when WLFI drops below lent price, lenders of both of these tokens will be locked in due to bad debt as forced liquidations will kick in This could death spiral USD1 and lead to another LUNA/UST situation I doubt that this could happen due to the backing World liberty financial has but smaller investors could get swiped Why bother with these short-term attractive but extremely risky lending APRs where you can get that same outcome with a proper strategy on Aerodrome finance