WLFI Defends Lending Position, Reveals $65M Token Buyback

WLFI pushes back on liquidation fears, reveals $65M in WLFI buybacks and major USD1 stablecoin upgrades for AI-native payments.

World Liberty Fi is hitting back at what it calls misinformation about its lending activity on WLFI Markets. The project addressed the claims directly on X. 

According to the team, the concerns circulating online misrepresent how its borrowing strategy actually works. 

World Liberty Fi says it supplied WLFI tokens as collateral and borrowed stablecoins, a standard DeFi practice. More importantly, the team insists there is no liquidation risk involved.

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WLFI Markets Lending Strategy Explained

World Liberty Fi describes itself as one of the largest suppliers and borrowers on its own platform. 

The team argues this is intentional, not a warning sign. 

By anchoring the borrowing activity, it generates yield that benefits everyday users on the platform. Those users are currently earning stablecoin yields that World Liberty Fi says outpace what traditional financial markets offer right now.

The project also used its X post to address critics directly. 

It argued that even in a scenario where market conditions moved sharply against the position, the team could simply add more collateral. 

World Liberty Fi framed this as a feature of decentralized lending, not a vulnerability. The team maintains the position reflects confidence in the protocol, not reckless exposure.

WLFI Token Buyback and Governance Update

World Liberty Fi disclosed that it has repurchased 435,301,344 WLFI tokens over the past six months. 

The purchases happened in the open market at an average price of $0.1507, bringing the total spend to roughly $65.58 million. The team stated the buybacks were voluntary, driven by belief in the project’s direction rather than any external obligation.

On governance, the project announced plans to post a proposal to unlock tokens currently locked for early holders. 

World Liberty Fi said the proposal will go to its community forum next week before moving to a formal vote. The move is aimed at rewarding participants who supported the project in its early stages.

USD1 Stablecoin Gets Technical Overhaul

World Liberty Fi also shared details about a significant upgrade to its USD1 stablecoin. 

The update introduces gasless transfers, meaning users and AI agents can send USD1 without needing to hold ETH to cover transaction fees. The team says this removes friction and opens the stablecoin to a wider user base.

Beyond that, USD1 now supports infrastructure built for emerging AI payment protocols, including MPP and x402. 

World Liberty Fi says the integration requires zero additional setup for developers already building on those systems. 

The upgrade also brings stronger compliance tools, such as controls for frozen funds, which the team says positions USD1 for tightening regulatory standards ahead.

USD1 currently sits at an annual revenue run rate of $159.5 million, according to the project. World Liberty Fi says all existing balances, approvals, and integrations transferred over without disruption during the upgrade.

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