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World Liberty Fi is increasing its ETH position, divesting WBTC

In this post:

  • World Liberty Fi withdrew WBTC from Aave and swapped it into WETH.
  • The fund is focusing more on Ethereum-based DeFi, as WBTC offers relatively low yield.
  • USD1 season was announced in 2026, boosting both centralized and DeFi activity.

World Liberty Fi rolled over some of its WBTC positions into ETH. Previously, the fund has shown significant support for the Ethereum ecosystem. 

World Liberty Fi switched one of its WBTC positions into ETH, based on recent wallet data. The fund removed WBTC from an Aave vault and exchanged some of the funds into ETH. 

The fund used a dedicated address for its swapping operations, which used a decentralized trading infrastructure. The funds were swapped through the Cow Protocol aggregator, the recently integrated trading pathway for Aave. 

The recent swap was part of a series of operations in which World Liberty Fi shifted its liquidity. The shift takes into account the low yield of Aave’s WBTC vault, at 0.1% annualized. 

The fund retains over 770 WETH, with the potential of wrapping or staking. Currently, various forms of wrapped ETH are one of the biggest holdings for World Liberty Fi. The latest sale increased the balance of WETH, which is not affiliated with any DeFi protocol. 

After a recent vote, WETH can earn 3.81% on Aave. The token is also more agile compared to WBTC, which has been phased out from some DeFi protocols. The total supply of WBTC has fallen to an all-time low of 124,963 wrapped coins, as it lost support from large-scale holders, including FTX. 

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World Liberty Fi has mostly split its BTC holdings from its DeFi ecosystem operations and shifted to ETH as a more agile asset for DeFi collaterals. The shift in operations happened as WETH traded higher, reaching $3,251.15. ETH traded at $3,255.21, or 0.035 BTC. 

World Liberty Fi announces USD1 season

World Liberty Fi has mostly focused on spreading the influence of its USD1 token. For now, WLFI tokens remain mostly unchanged, trading at around $0.17, with no participation in DeFi or other operations. 

The supply of USD1 has been growing in the new year, reaching a new all-time high at over 3.38B tokens.

USD1 has been spreading through the Binance ecosystem, as both a source of centralized and decentralized liquidity. Recently, World Liberty Fi announced new USD1 pairs on Binance. 

Additionally, USD1 has been used within the BNB Chain meme ecosystem. The token is also forming a pair on Aster DEX, boosting the liquidity of the newly launched B token. 

USD1 spreads as a multi-chain stablecoin

The main World Liberty Fi wallet also shows increased USD1 activity, with redeeming transactions and new mints. USD1 is a cross-chain asset and has even spread to the Raydium exchange on Solana. 

World Liberty Fi is increasing its ETH position, divesting WBTC.
USD1 remains the main activity driver for World Liberty Fi. The stablecoin spread to more chains in the past year, boosting its supply on Ethereum. | Source: Dune Analytics.

Around 61% of USD1 is on the BNB Chain, down from over 94% initially. The fastest-growing supply of USD1 is on Ethereum, with robust inflows to Solana. 

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USD1 also brings liquidity to a selection of meme tokens, though the assets remain volatile and risky.

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Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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