TechFlow reports that on April 13, risk management firm Chaos Labs tweeted that the World Liberty Finance (WLF) team has recently significantly increased its borrowing activity on the Dolomite protocol, pushing WLFI token collateral utilization close to the cap of 510 million tokens. This activity primarily involves two multi-signature wallets (0x5be9 and 0x44a6). Wallet 0x44a6 pledged 300 million WLFI tokens (approximately $242 million) to borrow roughly $40.7 million in stablecoins—primarily USD1—while wallet 0x5be9 employed a circular borrowing structure: it borrowed $111 million in USD1 and $89 million in USDC, then reused the borrowed USD1 as collateral to borrow additional USDC. Under the current structure, WLFI would need to decline by approximately 75% before liquidation is triggered. The team has repaid about $10 million in USD1 and stated it will add further collateral if necessary. As of now, World Liberty Finance accounts for 82.7% of Dolomite’s total supply and 85.3% of its total borrowings. This situation remains fluid and evolving.
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