WLFI is about to launch, early investors are reaping 20 times returns, is the launch the peak or a continuation of the myth of explosive growth?

CN
10 hours ago

This article is reprinted with authorization from Baihua Blockchain, and the copyright belongs to the original author.

WLFI, a cryptocurrency project deeply endorsed by the Trump family, is becoming the market focus as its launch date approaches. It is no longer just a simple DeFi platform but a "next-generation financial infrastructure" that combines stablecoins with capital markets.

Currently, the pre-market price on major platforms has reached $0.319, which is more than 20 times the cost of early investors at $0.015.

Behind the huge wealth myth lies significant uncertainty. This highly anticipated Trump family project, will it continue to create a surge myth like the TRUMP Meme, or will it be "peak upon launch"?

This article will provide you with a detailed understanding of WLFI and the layout behind it.

The core positioning of WLFI is a hybrid of a stablecoin issuer and a decentralized finance (DeFi) service platform. The organization plans to offer payment, lending, and token issuance services through its flagship product:

USD1 Stablecoin: A digital currency pegged to the US dollar, fully backed by short-term US Treasury bonds, cash, and dollar deposits, with BitGo Trust Company as the custodian.

WLFI Governance Token: A utility token used for protocol governance, token emission, and fee capture.

The value proposition of WLFI lies in combining regulated on-chain dollars with governance tokens, which can guide protocol revenue and influence treasury policy. The platform aims to serve retail users (providing deposits, payments, and stablecoin transfers through a mobile app) as well as institutional users seeking on-chain trade financing and real-world asset issuance.

WLFI's flagship product is USD1, a fully collateralized stablecoin backed by cash and US Treasury bonds.

WLFI states that it collaborates with BitGo Trust Company to hold reserves and mint and redeem USD1 on demand through these reserves, achieving direct conversion between the stablecoin and the US dollar. Currently, the circulating supply of USD1 is $2.4 billion, making it the sixth-largest stablecoin.

USD1 serves both retail and institutional users. Retail users can hold stable on-chain assets, while institutional users can utilize USD1 for cross-border settlements, trade financing, and yield-oriented DeFi strategies. WLFI's ultimate goal is to achieve regulated on-chain securities and real-world assets settled in USD1, creating a unified market for digital and traditional finance.

To ensure cross-chain portability, WLFI integrates USD1 through Chainlink's Cross-Chain Interoperability Protocol (CCIP), supporting secure transfers between Ethereum and Binance Smart Chain, with plans to support more networks. This multi-chain design aims to position USD1 as a settlement asset across ecosystems.

WLFI's governance token has completed one of the largest token presales to date, selling 25 billion tokens and raising $550 million. The presale attracted over 85,000 participants, reflecting strong demand from retail and institutional investors.

WLFI tokens are scheduled to open for trading on September 1, 2025, with early buyers receiving a 20% token allocation, while the remaining portion will be gradually unlocked according to a schedule determined by community governance votes. This structure aims to balance early liquidity for participants with long-term interest alignment. Tokens allocated to the team, founders, and advisors remain locked at the token generation event (TGE).

The partnership with Nasdaq-listed ALT5 Sigma is a landmark event in WLFI's strategy. In a recent S1 filing, ALT5 Sigma announced plans to raise $1.5 billion to purchase WLFI tokens and intends to hold approximately 7.5% of the total token supply. As part of the deal, they received WLFI tokens worth $750 million.

This arrangement is similar to MSTR's Bitcoin corporate treasury strategy, indicating that WLFI aims to link its tokens with a publicly listed company. Eric Trump has joined the board of ALT5 Sigma, and Zach Witkoff has become the chairman, further solidifying the connection between the two companies.

To enhance the liquidity and utility of USD1 and WLFI, WLFI is integrating with established DeFi protocols:

Aave v3 Deployment: WLFI proposes to launch a USD1 lending pool on Aave v3. This proposal will allocate 20% of protocol fees and 7% of WLFI token supply to the Aave DAO for governance and liquidity mining. This dedicated instance will support lending markets for Ethereum (ETH) and Wrapped Bitcoin (WBTC), enhancing the liquidity of USD1 and attracting users. This integration highlights WLFI's focus on connecting leading DeFi money markets. (However, there is some controversy regarding the validity of this proposal and whether it will be fulfilled.)

Dolomite: Dolomite is a lending protocol founded by WLFI's Chief Technology Officer. Dolomite is one of the earliest DeFi protocols to support USD1 integration and lending pools.

Blockstreet: Blockstreet is a launch platform and token issuance platform within the WLFI ecosystem, aimed at providing infrastructure for new projects to mint, distribute, and list tokens using USD1 and WLFI as core settlement assets. Blockstreet's roadmap includes cross-chain issuance and compliance tools, but specific details remain somewhat vague.

WLFI is committed to connecting traditional capital markets with decentralized finance (DeFi) through its flagship product, the USD1 stablecoin, and governance tokens, creating the next-generation financial infrastructure.

Ecosystem projects like Dolomite and Blockstreet provide liquidity and utility support for USD1 and WLFI. Despite the controversy surrounding the Aave v3 integration proposal, WLFI still demonstrates the potential to build a unified financial market through its multi-chain design and governance mechanisms.

With the grand vision of "next-generation financial infrastructure," how large of a market value can WLFI support?

Related Articles: The US government chooses Chainlink and Pyth to publish economic data on-chain.

Original article: “WLFI Set to Launch, Early Investors Reap 20x Returns, Peak Upon Launch or Continuation of Surge Myth?”

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