In a significant move for the decentralized finance (DeFi) sector, World Liberty Financial, the DeFi initiative spearheaded by the Trump family, officially announced on Monday the launch of its new cryptocurrency lending platform, “World Liberty Markets.” This platform is designed to provide users with robust lending and borrowing services, with its proprietary US dollar-pegged stablecoin, USD1, at its core.
The technical backbone of this innovative service is powered by the DeFi protocol Dolomite. The announcement sparked immediate market excitement, leading to a remarkable 57% surge in Dolomite’s native token, DOLO. Concurrently, World Liberty Financial’s governance token, WLFI, also experienced a notable increase of approximately 4.8% within two hours of the news breaking, reflecting strong investor confidence.
Beyond USD1, “World Liberty Markets” offers versatility by supporting a range of popular cryptocurrencies and stablecoins as collateral. Users can leverage WLFI, Ethereum (ETH), Coinbase Wrapped Bitcoin (cbBTC), as well as leading stablecoins USDC and USDT, to access lending opportunities on the platform.
As a newly launched platform, the lending market depth on World Liberty Markets is currently in its nascent stages. Initial data indicates an annualized interest rate of approximately 0.83% for borrowing USD1, while lending USD1 currently yields around 0.08%.
World Liberty Financial emphasized that the debut of this lending platform marks a pivotal milestone for USD1, propelling it towards broader “real-world application scenarios.” This strategic expansion comes as USD1 continues its impressive growth trajectory, with its circulating supply recently exceeding a significant $3.4 billion.
Zak Folkman, Chief Operating Officer of World Liberty Financial, expressed enthusiasm in a recent statement: “USD1 has surpassed all expectations.” He underscored that the launch of the lending market is merely the initial phase, with a robust roadmap promising the introduction of several more products over the next 18 months, signaling ambitious plans for ecosystem expansion.
In a further effort to incentivize community participation, the platform has also rolled out the “USD1 Points Program.” This initiative aims to reward users who contribute liquidity to USD1. However, specific details regarding the points’ utility, the reward mechanism, or the eligibility criteria are yet to be officially disclosed and are anticipated in future announcements.
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