Share this article
WLFI mints $25 million in fresh USD1 and burns $3 million, days after repayment claim
The mint and a simultaneous $3 million burn come days after the venture said it had repaid $25 million of the borrowing position that left depositors unable to withdraw from a DeFi lending pool.
Apr 13, 2026, 12:30 p.m.
What to know:
- World Liberty Financial minted 25 million USD1 stablecoins and burned 3 million on Monday, resulting in a net $22 million increase in USD1 circulation as it manages fallout from its Dolomite lending position.
- The moves follow the firm’s claim that it has repaid $25 million of the roughly $75 million it borrowed against its own governance token, a strategy that had pushed Dolomite’s USD1 lending pool to near-100% utilization and trapped other depositors.
- While the mint was funded via BitGo Custody and the burn permanently removed tokens from circulation, World Liberty Financial has not disclosed why 3 million USD1 were retired or how the newly created tokens will be used.
The venture deposited billions of WLFI tokens as collateral and borrowed stablecoins that were partially routed to Coinbase Prime, pushing Dolomite’s USD1 lending pool to near-100% utilization and leaving other depositors unable to fully withdraw.
Monday’s mint was funded through BitGo Custody and executed via WLFI’s USD1 Mint Authority contract. The 3 million USD1 burn moved from an address starting 0x2ce to the TokenGovernor contract before being sent to the null address, permanently removing the tokens from circulation.
Smaller test transactions of $10, $10,000, and $40,800 in USD1 were sent to a previously inactive address in the hours before the mint, a pattern consistent with wallet verification ahead of larger transfers.
