Author: Weilin, PANews
“It’s easier to get things done if you have connections in the government,” and this saying is particularly applicable to the Trump family’s encryption project.
Recently, World Liberty Financial Inc. (WLFI) announced plans to launch a stablecoin, USD1, which can be exchanged for USD at a 1:1 ratio. According to market observations, the mainnet soft launch of USD1 actually took place around April 12, when the first USD1 liquidity pools were deployed on Uniswap V3 and PancakeSwap V3. According to incomplete statistics, USD1 has rapidly expanded and integrated more than 10 protocols or applications.
Since World Liberty Financial is the family DeFi project of US President Trump, the launch of the stablecoin USD1 has attracted widespread market attention, especially its subsequent deployment on Ethereum, BNB Chain, and Tron. In addition to Ethereum, which relies on strength cooperation, BNB Chain and Tron may be more driven by commercial interests. For example, Binance also obtained $2 billion in financing for MGX through USD1, which increased the market value of the stablecoin by $2 billion. Sun Yuchen is the largest individual investor in WLFI, with an investment of $75 million.
Expanding from Ethereum and BNB Chain to Tron, integrating with multiple DeFi protocols
According to the official introduction, WLFI's USD1 is 100% guaranteed by U.S. short-term Treasury bonds, U.S. dollar deposits and other cash equivalents, ensuring that each token is anchored to the value of $1. The reserve asset portfolio is regularly audited by a third-party accounting firm and is managed by BitGo, an independent qualified custodian. In addition, BitGo's prime brokerage service BitGo Prime will also support USD1, enabling institutional clients to obtain sufficient liquidity and trading opportunities.
Initially, USD1 tokens were minted on the Ethereum (ETH) and Binance Smart Chain (BSC) blockchains. On May 14, BNB Chain officially supported USD1 and pointed out that Four.Meme, GMGN, SafePal, etc. already support USD1.
On May 1, WLFI co-founder Zack Witkoff announced that USD1 will also be natively issued on the Tron chain, further expanding its cross-chain capabilities. Tron founder Justin Sun is also an advisor to WLFI and has invested a total of $75 million in the project.
As of May 15, according to CMC data, the total circulation of USD1 has reached 2.13 billion, with a market value of approximately US$2.13 billion, ranking fifth. The top four are USDT, USDC, DAI, and USDe.
The official announcement of USD1 quickly triggered the deployment of liquidity in the market. On April 12, the on-chain monitoring platform Lookonchain disclosed that market maker DWF Labs has deployed 6 DeFi liquidity pools for USD1, with a total value of US$18 million. These pools include the following pairings:
Ethereum: 1.5 million USDT and 1.5 million USD1, 2.5 million USDC and 2.5 million USD1, 490,000 USDf and 500,000 USD1, 318.5 ETH and 500,000 USD1. BSC chain: 3 million USDT and 3 million USD1, 1,730 BNB and 1 million USD1.
On April 9, DWF Labs also subscribed for 250 million WLFI at a price of US$0.1, with a total amount of US$25 million.
The launch of USD1 is not limited to the deployment of liquidity pools, but also actively expands the DeFi ecosystem. Multiple protocols and DAOs have announced the integration of USD1:
- Venus Protocol : On May 15, Venus, a decentralized lending platform based on the BNB chain, announced the official launch of USD1.
- Meson Finance: On May 15, cross-chain DEX Meson Finance announced support for USD1.
- StakeStone : On May 9, the full-chain liquidity infrastructure StakeStone announced that the integration of WLFI was officially launched.
- Aster : On May 9, the decentralized perpetual contract exchange Aster included USD1 as a collateral option. The project is deployed on Ethereum and BNB Chain.
- Lista DAO : On May 7, USD1 landed in the Lista DAO ecosystem, and the USD1/ListaDAO pool was launched, bringing the release of stable income and DeFi utility. Lista DAO is a liquid staking derivative (LSD) project operating within the BNB Chain ecosystem.
- Pyth Network : On May 3, USD1 was integrated into the oracle solution Pyth Network.
- Falcon Finance : On April 11, Falcon Finance launched USD1 as collateral, further expanding its application scenarios. The project is a synthetic dollar protocol supported by DWF Labs.
Login HTX and MEXC to complete MGX investment in Binance
The application of USD1 is not limited to the decentralized ecosystem, but has also quickly entered centralized exchanges. On May 7, the USD1/USDT trading pair was launched on the HTX exchange, supporting deposits and transactions. This is the first time that USD1 has been listed on a major centralized exchange. On the same day, the USD1/USDT trading pair was launched on the MEXC exchange, with zero withdrawal and transaction fees.
It is also worth mentioning that on May 1, Eric Trump, son of US President Trump and head of WLFI, said that the US dollar-denominated stablecoin USD1 issued by WLFI has been officially selected as the official stablecoin for Abu Dhabi investment institution MGX to complete its $2 billion investment in Binance. Eric Trump said at the Token2049 event held in Dubai: "We thank MGX and Binance for their trust in us, and I think this is just the beginning." Earlier this year, MGX, an Abu Dhabi-based investment company, spent $2 billion to acquire a stake in Binance.
On May 16, Binance founder Zhao Changpeng also publicly stated for the first time that MGX's $2 billion investment in Binance was completed using the USD1 stablecoin, but had nothing to do with the TRUMP token (Meme coin).
In terms of consumption scenarios, USD1 has also been connected to many encrypted payment and commercial projects:
- TokenPocket : On May 15, the decentralized multi-chain wallet TokenPocket announced support for USD1.
- HOT Wallet ( HOT Protocol ) : On May 9, TG Ecosystem’s HOT Wallet announced support for USD1.
- Umy : On May 9, Web3 travel and consumption platform Umy announced that users can use USD1 to book over one million hotels and luxury travel services around the world on the platform
- Pundi X : On May 8, the Pundi X payment ecosystem was fully integrated with USD1, including XPOS and Pundi X Pay.
According to the official introduction, USD1 is mainly aimed at institutional clients, and is positioned to provide safe and efficient cross-border payment and trading tools, while supporting the widespread application of the DeFi ecosystem. Zach Witkoff, co-founder of WLFI, once emphasized that "USD1 is a digital dollar stablecoin tailored for sovereign investors and large institutions, which can seamlessly and securely support cross-border transactions."
Zach Witkoff also revealed that there will be more cooperation related to the stablecoin USD1 in the future. He said: "World Liberty is preparing a lot of plans... We are working hard to promote the integration with traditional retail POS systems." At present, the progress of USD1 cooperation is very rapid.
On May 7, WLFI started a new governance proposal: to test the airdrop function by distributing $1 to all $WLFI holders - rewarding the earliest supporters and preparing for future development. The proposal ended on May 14, with a total of 11,780 votes and 99.96% of the voting weight in favor, and the proposal was successfully passed.
In general, since its launch, USD1 has demonstrated its future potential as a presidential family DeFi project with its multi-chain expansion and multi-protocol integration. Is the stablecoin endorsed by the US president expected to occupy a place in the stablecoin market and challenge the status of USDC and USDT? Subsequent market dynamics are worth further observation.
