WLFI's strategy of using high deposit interest rates to capture market share for USD1 is showing initial success. By offering over 10% APY for several months, WLFI attracted significant capital, pushing USD1 supply to a peak of $5.374 billion in February. As the subsidy decreased and interest rates fell to around 6% APY, some capital exited, reducing the supply to $4.071 billion.
Despite the reduced interest rates, USD1 supply has rebounded to $4.511 billion, indicating that the remaining users are beginning to drive genuine demand through transactions and lending activities. This suggests the formation of a sustainable ecosystem as the strategy transitions from attracting to retaining users.
USD1 Supply Rebounds as WLFI Strategy Shows Initial Success
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