→WLFI Collateral Loop Breakdown on Dolomite
World Liberty Finance team has built a complex collateral loop using $WLFI, $USD1, and $USDC, utilizing nearly the full 5.1B token cap and representing 82.7% of Dolomite's TVL. The structure relies on WLFI declining less than 75% to avoid liquidation, but risks arise from WLFI's low effective circulating supply (only 20% unlocked), liquidity four times below Binance listings, and potential investor dumps post mid-April unlock.

