1. Latest Project Developments
In the past year, World Liberty Financial (WLFI) has gradually built a DeFi ecosystem covering various fields such as lending, trading, payments, Meme, LSD, AI, and public chains, centered around the USD stablecoin USD1. Its strategic path can be summarized in "three steps": first, landing lending, trading, and other DeFi scenarios on mainstream public chains like BSC, Ethereum, and Solana to establish the basic demand for USD1; second, integrating USD1 into emerging sectors such as Meme, stablecoins, and AI through investments and partnerships to enhance usage frequency and user stickiness; finally, strategically investing in and participating in potential projects to acquire token rights and promote further penetration of USD1.
WLFI has completed four rounds of major financing to date, with the pricing of the two public rounds set at $0.015 and $0.05, respectively. The strategic round attracted leading institutions such as Sun Yuchen (Tron DAO), DWF Labs, Aqua1 Fund, and Web3Port. The most iconic event comes from the deep binding between WLFI and Nasdaq-listed company ALT5 Sigma. In the latest submitted S1 document, ALT5 Sigma announced plans to invest $1.5 billion to purchase WLFI governance tokens. This arrangement is widely viewed in the market as analogous to MicroStrategy's Bitcoin treasury model, where tokens are incorporated into the corporate financial system through holdings by a listed company, thereby endowing them with higher financialization and compliance attributes. Eric Trump has joined the board of ALT5 Sigma, while WLFI CEO Zach Witkoff has directly taken on the role of chairman of the company.
Overview of WLFI Purchase Costs
| Round | Investor | Amount | Tokens Acquired | Cost | Date | Unlock Status | |---------------|---------------------------|----------------|------------------|--------|--------------|------------------------| | Strategic Round | Tron DAO | $75 million | Not disclosed | Not disclosed | 2024.11.24 & 2025.01.20 | Not yet specified | | Strategic Round | Web3Port | $10 million | 200 million | $0.05 | 2025.01.27 | Not yet specified | | Public Round 1 | Public | $300 million | 2 billion | $0.015 | 2025.01.20 | TGE unlock 20% | | Strategic Round | Oddiyana Ventures | Not disclosed | Not disclosed | Not disclosed | 2025.02.11 | Not yet specified | | Public Round 2 | Public | $250 million | 500 million | $0.05 | 2025.03.14 | TGE unlock 20% | | Strategic Round | DWF Labs | $25 million | 250 million | $0.1 | 2025.04.16 | Not yet specified | | Strategic Round | Aqua1 Fund | $100 million | Not disclosed | Not disclosed | 2025.06.27 | Not yet specified | | Equity Acquisition | ALT5 Sigma Corporation | $1.5 billion | 750 million | $0.2 | 2025.08.12 | Not yet specified |
2. WLFI Token Economics and Market Performance
According to WLFI's blog, the initial circulation at TGE was 24,669,070,265 tokens, or 24.6%, including:
- 10 billion: Ecosystem
- 7.78 billion: Belonging to Alt5
- 2.88 billion: For DEX & CEX liquidity and marketing
- 4 billion: Belonging to public investors
The portion belonging to Alt5 is theoretically not circulating at TGE due to strategic reserves, while the ecosystem portion, according to tweets from WLFI wallet department members, is related to the USD1 points program and will not circulate at TGE. Therefore, the actual circulating portion is the liquidity and public 20% unlock (totaling 4.288 billion), while the other tokens will remain locked.
Market Performance
After WLFI launched on September 1, its token price trend appeared relatively cautious due to the lack of transparency regarding the initial circulation scale. The price peaked at $0.32 during TGE but quickly faced selling pressure, retreating to around $0.225 by September 2. Based on this, WLFI's initial circulating market cap was approximately $5.71 billion, with a fully diluted valuation (FDV) as high as $23.1 billion.
In terms of return performance, investors who participated in public round 1 at $0.015 saw their paper profits peak at nearly 20 times; even participants in public round 2 at $0.05 still reaped several times returns during the TGE phase. Some strategic investors, such as Web3Port and DWF Labs, also achieved considerable returns in the short term. In contrast, ALT5 Sigma's large-scale strategic acquisition at $0.20 has its cost price nearly equal to the current price, thus forming a natural psychological support range in the market. Combined with pre-market trading trends, WLFI has repeatedly received buying support around $0.20; if it subsequently falls below this range, it may trigger a larger-scale emotional sell-off risk.
Currently, WLFI's price fluctuations are mainly influenced by two variables: first, the phased unlock selling pressure from public round investors, and second, whether the ecosystem allocation and ALT5 Sigma's strategic reserves will flow into the secondary market. If the ecosystem tokens are indeed deeply tied to the USD1 points program as official members claim, it will be difficult to form real circulation in the short term, thus keeping market selling pressure relatively controllable. However, if there is a discrepancy in expectations regarding liquidity, such as ALT5 Sigma or some ecosystem funds cashing out early, WLFI's price stability may still face significant challenges.
3. WLFI Ecosystem
DeFi
1. Dolomite
Dolomite is a decentralized lending and margin protocol deployed on Ethereum. Dolomite has taken the lead in integrating USD1 and has adjusted its main market trading pair to DOLO/USD1, making it one of the largest DeFi platforms for USD1. Currently, Dolomite provides about 90% of USD1 lending liquidity on Ethereum, making it the most important hub for WLFI in the Ethereum ecosystem. Corey Caplan, co-founder of Dolomite, also serves as WLFI's CTO, closely binding it to WLFI in terms of mechanism and ecosystem.
2. Lista DAO
Lista DAO is a stablecoin and lending platform operating on BSC. In May of this year, it officially announced a strategic partnership with WLFI and incorporated USD1 into Lista DAO's treasury system, allowing users to use it as collateral to borrow lisUSD, while a liquidity pool for USD1/lisUSD has been established on PancakeSwap. WLFI has promoted the integration of USD1 into Lista DAO, enhancing its lending and liquidity scenarios on BSC.
3. StakeStone
StakeStone is a cross-chain LSD liquidity protocol that announced a partnership with WLFI in May to provide infrastructure for USD1 users and cross-chain staking yields, allowing users to obtain more liquidity and returns on staked assets through USD1.
Token Launch Platforms
1. Lets.Bonk
Bonk.fun has partnered with WLFI to become the official Launchpad for USD1 on Solana. Its plans revolve around the popularity of stablecoins and the Meme community, promoting the launch of more new projects based on USD1.
2. Buildon
Buildon is a Meme project initiated on BSC. It plans to launch a dedicated Launchpad feature for USD1 in the future, integrating USD1 into the Meme scene and leveraging traffic effects to enhance WLFI's ecological influence.
3. Blockstreet
Blockstreet is WLFI's official launch platform, with co-founder Matthew Morgan serving as an advisor to WLFI and also as the CIO of Nasdaq-listed company ALT5 Sigma, which is raising $1.5 billion to launch WLFI's treasury.
4. AOL
AOL is a Meme coin launched by WLFI advisor @cryptogle on Bonk.fun, and it has announced plans to launch the project America.fun.
RWA and Stablecoins
1. USD1
USD1 is the dollar stablecoin issued by WLFI in March, with a market cap exceeding $2.4 billion as of September 1. It has been deployed on BNB Chain, Ethereum, Tron, and Solana, with BNB Chain accounting for over 88.5%, making it the primary circulation network.
2. Chainlink (LINK)
WLFI has achieved cross-chain interoperability for USD1 through Chainlink's CCIP technology, expanding its multi-chain applications.
3. Ethena (ENA)
WLFI established a partnership with Ethena Labs last December, exploring long-term collaboration with sUSDe as the entry point.
4. Ondo Finance (ONDO)
WLFI reached a partnership with Ondo Finance in February, planning to incorporate Ondo's RWA products (USDY, OUSG, etc.) into reserves to enhance USD1's asset support capability.
5. Falcon Finance
Falcon Finance is a synthetic stablecoin platform launched by DWF Labs, using a dual-token model: USDf (stablecoin) and sUSDf (yield certificate). WLFI strategically invested $10 million and allows users to participate in Falcon's minting and yields using USD1.
6. Plume Network
Plume Network is an EVM public chain focused on RWA, supporting the issuance of native stablecoins such as pUSD. WLFI has adopted USD1 as its reserve asset to support the stability of pUSD. USD1 has become the benchmark currency of the Plume ecosystem, helping WLFI deeply engage in the RWA narrative.
Other Projects
1. Vaulta (formerly EOS)
Vaulta is the new public chain after EOS rebranding, positioned as Web3 banking infrastructure, supporting asset custody, cross-chain payments, and lending. WLFI has committed to investing $6 million and integrating USD1 as its core settlement asset.
2. EGL1
EGL1 is the winner of the USD1 trading competition hosted by Four.Meme.
3. Liberty
A Meme coin deployed on BNB Chain, a charity platform based on USD1.
4. U
A Meme coin on BNB Chain, with WLFI's public wallet holding over 45% of its supply.
5. Tagger
Tagger is a decentralized AI data platform that uses USD1 as the settlement currency for Web2 client orders and plans to reward data annotators in USD1.
4. Summary
From the price perspective of WLFI, there are currently two potential scenarios regarding its actual circulating supply:
- Ideal Circulating Supply Estimate
According to WLFI's official data, approximately 24.66 billion tokens were unlocked during the initial TGE, including 4 billion tokens for public investors (about 20% circulating), and 2.88 billion for liquidity and marketing. Although the Alt5 reserves and ecosystem allocations are nominally "unlocked," the official indication is that these tokens are bound by strategic reserves or the USD1 points program and theoretically will not enter market circulation immediately. If estimated based on this logic, the current actual circulating tokens are about 6.88 billion, equating to a market cap of approximately $1.58 billion (based on the current trading price of $0.23).
- Potential Selling Pressure Risks in Unlock Structure
Conversely, both Alt5 Sigma's strategic reserves and the ecosystem's reserved portion have the potential to become channels for future sell-offs. Although Alt5 may not sell immediately, there could be an arbitrage impulse if market returns are enticing; the 10 billion tokens allocated to the ecosystem represent a potential supply flood. Once a large number of tokens are unlocked and enter the market, it will exert significant pressure on trading depth and price, becoming an unstable factor in the WLFI market.
Looking ahead, WLFI's development will continue to revolve around the USD1 stablecoin ecosystem. As WLFI establishes partnerships with more projects or launches new features such as staking and lending, it is expected to enhance the market value of related project tokens and further enrich the application scenarios and ecological diversity of WLFI tokens. Additionally, ALT5 Sigma's $1.5 billion investment and its deep binding with the board signify that WLFI has successfully embedded itself in the core narrative of a compliant financial system. If it can replicate a similar "corporate treasury" model for Bitcoin like MicroStrategy in the future, WLFI is likely to gain higher recognition in traditional financial markets and enhance its long-term financialization potential.
Risk Warning:
The above information is for reference only and should not be considered as advice to buy, sell, or hold any financial assets. All information is provided in good faith. However, we make no express or implied representations or warranties regarding the accuracy, adequacy, effectiveness, reliability, availability, or completeness of such information.
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