WLFI Proposes 5% Treasury (~$120M) to Boost USD1 Adoption via CeFi/DeFi Partnerships

Published: 2025-12-18 20:48:15 |

World Liberty Financial (WLFI) has opened a governance vote to allocate roughly 5% of its unlocked treasury — about $120 million at current prices — to accelerate adoption and liquidity for its stablecoin USD1. Launched in March, USD1 reached roughly $2.7 billion TVL within six months. The proposal would deploy WLFI tokens as strategic support (not direct token grants) across selected CeFi and DeFi partnerships to fund integration, liquidity programs, incentive schemes and expand governance influence for WLFI holders. WLFI says it will publicly disclose partners receiving treasury-based incentives to maintain transparency. The move follows recent exchange listings for USD1 (notably Binance adding USD1 pairs) and aims to narrow USD1’s market-cap gap with larger rivals such as PYUSD. The treasury holds about 19.96 billion WLFI (estimated reserve ~$2.4B); the proposal is now live for stakeholder voting and early feedback shows some opposition. Key keywords: WLFI, USD1 stablecoin, treasury allocation, governance proposal, CeFi, DeFi, liquidity, Binance listing.

Bullish

Allocating ~5% of WLFI’s unlocked treasury to support USD1 is a constructive, pro-growth measure that should increase USD1’s integrations, liquidity and market visibility. In the short term, announcement-driven buying or re-rating of WLFI could occur as traders anticipate utility demand for the token and potential partner-led liquidity events. The public disclosure of partners reduces counterparty risk and may reassure markets. However, dilution risk exists if treasury tokens are sold on-market or used in ways that increase circulating supply; that could cap upside. Mid to long term, successful CeFi/DeFi integrations and incentive programs likely boost USD1 adoption and network effects, narrowing its market-cap gap with rivals and supporting sustained demand for WLFI as the incentive token — a bullish structural signal. Early reported opposition in governance votes adds some execution risk, making short-term volatility possible, but overall the proposal is growth-oriented and positive for USD1 and WLFI value if implemented as described.