World Liberty said it is repaying $25 million of USD1 tied to its token-backed borrowing position on a DeFi protocol. World Liberty said it borrowed a total of $75 million in USD1 and USDC against about 5 billion WLFI tokens, and that about $40 million of the funds was moved to Coinbase Prime. World Liberty wrote on X on July 11 that it repaid $15 million of USD1 from its WLFI market position two days earlier and made an additional $10 million repayment that day.
One DeFi analyst argued that the position would be difficult to unwind without disrupting the market if it nears its liquidation threshold. With WLFI liquidity limited, the analyst said, tokens equal to about 5%% of total supply entering the market could trigger a sharp price drop.
Leave a Reply