Wu Blockchain has learned that Chaos Labs tweeted about the Trump family project, World Liberty Finance (WLFI), rapidly expanding its lending scale on Dolomite, pushing WLFI collateral utilization close to its limit (5.1 billion tokens nearly exhausted), mainly concentrated in two multi-signature addresses. One address collateralized approximately 3 billion WLFI tokens to borrow around $40.7 million in stablecoins, primarily USD1. The other address built a looping collateral structure using USD1 and USDC, with a liquidation threshold corresponding to a WLFI price drop of about 75%. Currently, USD1 utilization is at 83.4%, USDC at 90.19%, and the borrowing rate is approximately 5%. When factoring in WLFI rewards obtained through Merkl, the supply rate reaches 10.64% (the campaign ends in 3 days). Additionally, WLFI collateral size exceeds Binance's tradable volume by 4x, with only 20% of tokens unlocked—the rest are expected to be released in mid-April. Following the incident, the team has repaid approximately $10 million USD1 and stated they can supplement collateral. Currently, the team accounts for 82.7% of Dolomite's TVL and 85.3% of its lending, with on-chain funds highly concentrated and unclear structural usage. The situation is still developing. https://(wublock123.com)/news/chaos-labs-discloses-wlfi-staking-loop-dolomite-lending-concentration-59432