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$WLFI looks like a confirmed scam.
Been warning about this — this is the ugly side of DeFi.
WLFI reportedly borrowed $75M in stablecoins using its own token as collateral, via a protocol tied to insiders. They control ~55% of liquidity, effectively lending to themselves. Utilization spiked above 90%, locking out regular users. Funds were then routed to Coinbase Prime — likely converting inflated token value into real USD.
This isn’t decentralization — it’s a coordinated extraction.