WLFI, a crypto project deeply endorsed by the Trump family, is becoming a 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, representing a return of over 20 times compared to the early investors' cost of $0.015.
Behind the huge wealth myth lies significant uncertainty. Will this highly anticipated Trump family project continue the myth of soaring prices like the TRUMP Meme, or will it "peak at launch"?
This article provides a detailed look at WLFI and its underlying strategy.
01 What is WLFI?
WLFI's core positioning is a hybrid combining a stablecoin issuer with a decentralized finance (DeFi) service platform. The organization plans to offer payment, lending, and token issuance services through its flagship products:
USD1 Stablecoin: A dollar-pegged digital currency fully backed by short-term U.S. Treasuries, cash, and dollar deposits, with BitGo Trust Company as the custodian.
WLFI Governance Token: A utility token used for protocol governance, token emissions, and fee capture.
WLFI's value proposition lies in combining regulated on-chain dollars with governance tokens that can steer protocol revenue and influence treasury policies. The platform aims to serve retail users (offering deposits, payments, and stablecoin transfers via a mobile app) and institutional users seeking on-chain trade finance and real-world asset issuance.
02 USD1 - A Secure Institutional-Grade Stablecoin
WLFI's flagship product is USD1, a fully collateralized stablecoin backed by cash and U.S. Treasuries.
WLFI states that it partners with BitGo Trust Company to hold the reserves and uses these reserves to mint and redeem USD1 on demand, enabling direct conversion of the stablecoin to USD. Currently, USD1 has a circulating supply of $2.4 billion, making it the sixth-largest stablecoin.
USD1 serves both retail and institutional users. Retail users can hold stable-value on-chain assets, while institutional users can leverage USD1 for cross-border settlements, trade finance, and yield-oriented DeFi strategies. WLFI's ultimate goal is to enable regulated on-chain securities and real-world assets to be settled in USD1, creating a unified market for digital and traditional finance.
To ensure cross-chain portability, WLFI has integrated USD1 via 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.
03 WLFI Token Sale, Unlocking, and Governance
WLFI's governance token 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 both retail and institutional investors.
The WLFI token is scheduled to open for trading on September 1, 2025. Early buyers will receive 20% of their token allocation, with the remainder unlocked gradually based on a schedule determined by community governance votes. This structure aims to balance early liquidity for participants with long-term alignment. Tokens allocated to the team, founders, and advisors remain locked at the Token Generation Event (TGE).
04 ALT5 Sigma Treasury Company
The partnership with Nasdaq-listed ALT5 Sigma is a landmark event in WLFI's strategy. In a recent S1 filing, ALT5 Sigma announced raising $1.5 billion to purchase WLFI tokens, planning 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 WLFI's aim to peg its token to a publicly traded company. Eric Trump joined ALT5 Sigma's board, and Zach Witkoff became chairman, further solidifying the ties between the two companies.
05 Ecosystem Projects
To enhance the liquidity and utility of USD1 and WLFI, WLFI is integrating with established DeFi protocols:
Aave v3 Deployment: WLFI proposed launching a USD1 lending pool on Aave v3. The proposal would allocate 20% of protocol fees and 7% of the WLFI token supply to the Aave DAO for governance and liquidity mining. This dedicated instance would support Ethereum (ETH) and Wrapped Bitcoin (WBTC) lending markets, enhancing USD1's liquidity and attracting users. This integration highlights WLFI's focus on connecting with leading DeFi money markets. (However, there is some controversy regarding the validity and fulfillment of this proposal.)
Dolomite: Dolomite is a lending protocol whose founder is WLFI's Chief Technology Officer. Dolomite was one of the first DeFi protocols to support USD1 integration and lending pools.
Blockstreet: Blockstreet is a launchpad and token issuance platform within the WLFI ecosystem, aiming to provide 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 relatively vague.
06 Summary
Through its flagship USD1 stablecoin and governance token, WLFI aims to connect traditional capital markets with decentralized finance (DeFi) to build 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 demonstrates the potential to build a unified financial market through its multi-chain design and governance mechanisms.
With the grand vision of being "next-generation financial infrastructure," how much market capitalization can WLFI ultimately support?