World Liberty Fi boosts ETH exposure, cuts WBTC position

Source Cryptopolitan

World Liberty Fi rolled over some of its WBTC positions into ETH. Previously, the fund has shown significant support for the Ethereum ecosystem. 

World Liberty Fi switched one of its WBTC positions into ETH, based on recent wallet data. The fund removed WBTC from an Aave vault and exchanged some of the funds into ETH. 

The fund used a dedicated address for its swapping operations, which used a decentralized trading infrastructure. The funds were swapped through the Cow Protocol aggregator, the recently integrated trading pathway for Aave. 

The recent swap was part of a series of operations in which World Liberty Fi shifted its liquidity. The shift takes into account the low yield of Aave’s WBTC vault, at 0.1% annualized. 

The fund retains over 770 WETH, with the potential of wrapping or staking. Currently, various forms of wrapped ETH are one of the biggest holdings for World Liberty Fi. The latest sale increased the balance of WETH, which is not affiliated with any DeFi protocol. 

After a recent vote, WETH can earn 3.81% on Aave. The token is also more agile compared to WBTC, which has been phased out from some DeFi protocols. The total supply of WBTC has fallen to an all-time low of 124,963 wrapped coins, as it lost support from large-scale holders, including FTX. 

World Liberty Fi has mostly split its BTC holdings from its DeFi ecosystem operations and shifted to ETH as a more agile asset for DeFi collaterals. The shift in operations happened as WETH traded higher, reaching $3,251.15. ETH traded at $3,255.21, or 0.035 BTC. 

World Liberty Fi announces USD1 season

World Liberty Fi has mostly focused on spreading the influence of its USD1 token. For now, WLFI tokens remain mostly unchanged, trading at around $0.17, with no participation in DeFi or other operations. 

The supply of USD1 has been growing in the new year, reaching a new all-time high at over 3.38B tokens.

USD1 has been spreading through the Binance ecosystem, as both a source of centralized and decentralized liquidity. Recently, World Liberty Fi announced new USD1 pairs on Binance. 

Additionally, USD1 has been used within the BNB Chain meme ecosystem. The token is also forming a pair on Aster DEX, boosting the liquidity of the newly launched B token. 

USD1 spreads as a multi-chain stablecoin

The main World Liberty Fi wallet also shows increased USD1 activity, with redeeming transactions and new mints. USD1 is a cross-chain asset and has even spread to the Raydium exchange on Solana. 

World Liberty Fi is increasing its ETH position, divesting WBTC.
USD1 remains the main activity driver for World Liberty Fi. The stablecoin spread to more chains in the past year, boosting its supply on Ethereum. | Source: Dune Analytics.

Around 61% of USD1 is on the BNB Chain, down from over 94% initially. The fastest-growing supply of USD1 is on Ethereum, with robust inflows to Solana. 

USD1 also brings liquidity to a selection of meme tokens, though the assets remain volatile and risky.

Want your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Ethereum (ETH) Price Closes Above $3,900 — Is a New All-Time High Possible Before 2024 Ends?Once again, the price of Ethereum (ETH) has risen above $3,900. This bounce has hinted at a further price increase for the altcoin before the end of the year.
Author  Beincrypto
Dec 17, 2024
Once again, the price of Ethereum (ETH) has risen above $3,900. This bounce has hinted at a further price increase for the altcoin before the end of the year.
placeholder
Analyst Flags XRP as Market’s ‘Best Risk/Reward’ Play as Token Tests Critical $1.60 SupportCrypto analyst Scott Melker identifies a prime risk/reward setup for XRP as it tests key support at $1.60, offering a tight stop-loss against potential upside targets near $2.00.
Author  Mitrade
Feb 03, Tue
Crypto analyst Scott Melker identifies a prime risk/reward setup for XRP as it tests key support at $1.60, offering a tight stop-loss against potential upside targets near $2.00.
placeholder
Ethereum Price Forecast: ETH faces heavy distribution as price slips below average cost basis of investorsEthereum (ETH) extended its decline on Wednesday, dropping more than 5% over the past 24 hours toward the $2,100 level, which is below the $2,310 average cost basis or realized price of investors, according to CryptoQuant's data.
Author  FXStreet
Feb 05, Thu
Ethereum (ETH) extended its decline on Wednesday, dropping more than 5% over the past 24 hours toward the $2,100 level, which is below the $2,310 average cost basis or realized price of investors, according to CryptoQuant's data.
placeholder
Bitcoin Drops to $70,000. U.S. Government Refuses to Bail Out Market, End of Bull Market or Golden Pit? The U.S. government refuses to bail out Bitcoin, and with Fed rate cuts nowhere in sight, a continued downward trend to test for a bottom is likely after a brief rebound.During the mid-da
Author  TradingKey
Feb 05, Thu
The U.S. government refuses to bail out Bitcoin, and with Fed rate cuts nowhere in sight, a continued downward trend to test for a bottom is likely after a brief rebound.During the mid-da
placeholder
Bitcoin Surrenders $65,000 as Analysts Warn of ‘Structural’ Market BreakBitcoin plunges 11% to break $65k as analysts term the crash "structural," citing a $1 trillion market wipeout and $2.09 billion in daily liquidations.
Author  Mitrade
Feb 06, Fri
Bitcoin plunges 11% to break $65k as analysts term the crash "structural," citing a $1 trillion market wipeout and $2.09 billion in daily liquidations.
goTop
quote