Chaos Lab: WLFI team conducts large-scale cyclical lending, collateral utilization rate approaches the limit

2026-04-13 00:58:22

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Deep Tide TechFlow News, April 13 — Risk management firm Chaos Labs tweeted that the World Liberty Finance team has recently significantly increased lending operations on the Dolomite protocol, causing the WLFI token collateral utilization rate to approach the 510 million token limit.
It mainly involves two multi-signature wallets (0x5be9 and 0x44a6), with wallet 0x44a6 collateralizing 300 million WLFI tokens (approximately $242 million USD) and lending out about $40.7 million USD in stablecoins (mainly USD1); wallet 0x5be9, through a looping structure, has lent out $111 million USD in USD1 and $89 million USD in USDC, and uses the borrowed USD1 to re-collateralize and borrow USDC again.
Under the current structure, WLFI would need to drop about 75% to trigger liquidation.
The team has repaid about $10 million USD1 and stated that additional collateral will be provided if needed.
As of now, World Liberty Finance accounts for 82.7% of Dolomite’s total supply and 85.3% of total lending.
This situation is still evolving.

WLFI0,25%

USD1-0,01%

USDC0,02%

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