According to Foresight News , citing Arkham data, World Liberty Financial (WLFI) today minted 25 million USD1 tokens through BitGo Custody and burned 3 million tokens through the TokenGovernor contract, resulting in a net increase of 22 million USD1 tokens in circulation. This minting amount is exactly the same as the loan amount WLFI claimed to have repaid a few days ago.
Previously, WLFI used a large amount of governance tokens as collateral to borrow stablecoins on the DeFi lending protocol Dolomite, causing the platform's USD1 lending pool to reach near 100% utilization, preventing other depositors from withdrawing funds normally. WLFI did not disclose the reason for this burn or the specific purpose of the newly minted tokens.
