8.8K @RhoRider ⚠️ Trump’s $WLFI is in freefall ahead of a large token unlock and an apparently massive insider rug pull scam…
The crime family in chief has been using $WLFI as collateral to borrow $100s of Millions in stablecoins…on insider-owned platforms.
This is going to get juicy 🍿 https://t.co/nBCRLM9Ite
8.8K @RhoRider 💥The Trump family $WLFI bribery token, with investments from Justin Sun and the UAE, plummets to new lows not seen since the initial Oct 2025 meltdown https://t.co/3MkO7Usgkf
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3.2K @Naeven_ 3.2K @Naeven_ anyone trying to chase this yield should know
recently, wlfi team deposited 5b $wlfi tokens (worth ~$450m) across two wallets as collateral on dolomite:
> 0x44a...5fad deposited 3b wlfi and borrowed $50m usd1 + $10m usdc, paying 1.35% apr on the borrowed funds
> 0x5be...7dbb deposited $110m usd1, 19k eth, and $22m usdc, then borrowed $89m usdc
they recycled this $89m + $10m usdc (their own deposit) and retrieved their $110m usd1, effectively earning 2.76% on net left asset value
the team also added 2b wlfi tokens (part of the 5b) to the same pool, boosting collateral and enabling them to borrow even more stablecoins
this generates an artificial apy, the team earns yield on stablecoins through a recycling loop, offsetting the negative yield
if $wlfi crashes, the protocol (lenders) could be left with bad debt, the risks seem to be much higher than the reward here
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174.8K @wublockchain12 According to Wu, WLFI responded to market concerns about its lending position on WLFI Markets, stating that as the primary supplier and borrower, it operates by collateralizing WLFI to borrow stablecoins, and there is currently no liquidation risk; additional collateral can be added if necessary. The project says this structure provides liquidity to the platform and generates revenue, with USD1's current annualized income at approximately $159.5 million. It also plans to submit a governance proposal to unlock locked tokens for early holders. https://t.co/iKPaLIvjYQ
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