World Liberty Financial used its own WLFI tokens as collateral to borrow about $75M in stablecoins.

This pulled a lot of liquidity out of the USD1 pool.

People are worried it’s a risky loop

using its own token like this could make losses worse and hurt other users.

risk is going up, liquidity is dropping, price is weak. $WLFI

WLFI

0.0778

-1.39%