The $25 million borrowed from Dolomite by WLFI has been returned, everyone can rest assured, it's a false alarm! It seems that this is the ultimate test of the USD1 lending pool, and the leverage has been basically resolved with the reduction of asset repayments. Of course, there is no sign of decoupling of USD 1 in this process. I think the resilience of US debt+full cash reserve+Trump family capital endorsement is playing a role behind this; However, this also reflects several common issues with the Defi protocol, which can be used as a reference for everyone: one ️⃣ Liquidity risk. A firewall needs to be installed here to prevent instantaneous impact on liquidity caused by large operations on a single address. If the borrowing volume is too large, it will directly increase the utilization rate of the pool, making it difficult for other lenders to exit. If there is a restriction on depositors withdrawing, the market will vote with their feet first, which needs to be noted. two ️⃣ Mortgage quality risk. The official statement that they will not be liquidated is just emphasizing that they still have the ability to replenish their positions; But the outside world may question whether WLFI's liquidity is deep enough to withstand effective pricing and disposal under pressure. three ️⃣ Interest relationships and governance perception risks. Compliance in terms of technology and compliance in terms of appearance are two different things, and cannot give people the feeling of lending money to themselves. In short, the core of DeFi is the security of assets, followed by generating revenue. I hope WLFI @ worldlibertyfi can do better in the future.