Trump's DeFi coin WLFI is not selling well! Is there any potential for stablecoin to be introduced again?

The Decentralized Finance project World Liberty Financial, promoted by Donald Trump, the Republican candidate for President of the United States, recently opened the public sale of its governance token $WLFI, with the goal of raising $300 million. However, the progress of this project has not been smooth. As of the deadline, $WLFI has sold a total of 967 million tokens, with a sales amount of only $14.5 million.

Image source: WLFI Trump Decentralized Finance protocolToken sales status

Will World Liberty Financial issue stablecoin?

However, World Liberty Financial's goals seem to go beyond just coin fundraising. According to Decrypt, the team is planning to launch a series of feature updates, including Stable Coin. This move seems to have been anticipated, as World Liberty Financial announced earlier this month that Rich Teo, co-founder of Paxos, would be the head of Stable Coin payment business for the development team. This raises the question of whether Teo is involved in World Liberty Financial's Stable Coin issuance plan.

What impact will Stablecoin have on World Liberty Financial?

At present, the Stable Coin in the Decentralized Finance zone is roughly divided into centralized Stable Coin, decentralized Stable Coin, and tokenization of national debt funds. The value of centralized Stable Coin is anchored to physical assets such as cash or securities, for example $USDT, $USDC; decentralized Stable Coin is based on cryptocurrency reserves or algorithms, for example $DAI or $FRAX; while tokenization of national debt funds is similar to centralized Stable Coin, based on assets such as cash, national debt, or repurchase protocol, and allows holders to enjoy the combined income of bond yields and bank deposits, for example Ondo Finance's $USDY, and BlackRock's tokenized fund $BUIDL.

Although it is not known what type of Stable Coin World Liberty Financial plans to issue, given that it is a lending protocol in the infrastructure of Decentralized Finance, it is expected that the platform will provide assets in Ether coin or Stable Coin supply pools; if it can further issue its own Stable Coin, World Liberty Financial will be able to maximize team profits through mechanisms such as over-collateralization of minting costs and lending protocol interest rates.

Stablecoin Market Overview

According to DefiLlama, the total issuance value of Stable Coins has reached $173.232 billion. The top three Stable Coins are $USDT ($120.534 billion), $USDC ($34.778 billion), and $DAI ($4.924 billion). Despite the lower-than-expected sales of World Liberty Financial Token, a Decentralized Finance project supported by Trump, the team may be able to participate in the fierce competition in the Stable Coin sector and seize a portion of the market share through the issuance of Stable Coins.

Image source: DefiLlama stablecoin sector market share