World Liberty Financial enables loan operations with USD1 on the DeFi platform

A World Liberty Financial, backed by the family of American President Donald Trump, took a decisive step in expanding its ecosystem by launching World Liberty Markets, a decentralized finance application that offers lending and borrowing services for its stablecoin USD1. The launch marks a crucial moment in the pursuit of practical utility for USD1 in the global DeFi market.

Immediate Market Response to Lending Services

The market reaction was particularly notable in the first few hours after the announcement. The DOLO token from Dolomite, the DeFi protocol underpinning the platform’s infrastructure, showed significant fluctuations in the short term. The WLFI, the governance token of World Liberty Financial, also moved notably, reflecting investor community interest in the new lending services. These movements indicate that the market recognizes the potential of expanding credit operations through USD1.

World Liberty Markets: Structure and Supported Assets

The platform was developed integrating with the Dolomite protocol, allowing users to supply and borrow on-chain digital assets. USD1 functions as the primary asset for lending operations, while other supported collateral includes ETH (Ethereum), Coinbase-wrapped Bitcoin (cbBTC), USDC, USDT, and the WLFI token itself. This diversity of accepted assets as collateral broadens possibilities for users wishing to participate in lending markets.

Additionally, the platform implements a USD1 Points Program that rewards users who supply the stablecoin, although specific eligibility criteria have not yet been disclosed in detail. This incentive suggests a engagement strategy designed to stimulate liquidity and the use of USD1 on the platform.

Initial Rates and Liquidity Challenges in USD1 Loans

Indicative rates for lending operations reflect a market in its early stages. Users can borrow USD1 at an approximate rate of 0.83%, while those supplying the stablecoin can earn yields close to 0.08%. However, liquidity remains limited at this initial stage, with expectations that these rates will adjust as transaction volume increases.

This low liquidity scenario is typical of new lending markets launches and presents both a challenge and an opportunity. As more users participate in USD1 lending operations, price dynamics are expected to evolve, potentially creating more attractive conditions for larger participants.

Planned Expansion and Growing Utility of USD1

The launch of World Liberty Markets is positioned by the company as the first of multiple products planned over the next 18 months. The USD1 stablecoin has already surpassed 2.15 billion in circulating supply, demonstrating a robust growth trajectory since its launch. World Liberty Financial had raised US$590 million in its WLFI token sale, ranking among the largest crypto token offerings of all time.

According to Zak Folkman, co-founder and COO of World Liberty, in an official statement, “USD1 exceeded all expectations.” This optimism reflects the strategy to expand the real utility of USD1 within the DeFi ecosystem, transforming it from a static asset into an active component in lending and decentralized finance operations. The next 18 months should determine whether this vision materializes with new products and integrations.