What is USD1? How large is the USD1 liquidity pool?

USD1 is a US dollar stablecoin launched by World Liberty Financial Inc. (WLFI) in March 2025, pegged at a 1:1 ratio to the US dollar, fully backed by US short-term government bonds, US dollar deposits, and cash equivalents, and held in custody by the professional digital asset accomplice BitGo.

As a crypto project led by the Trump family, WLFI is over 60% controlled by DT Marks DEFI LLC (Trump family controlled) and is directed by Eric Trump.

USD1 has developed rapidly since its launch, achieving multi-chain deployment on Ethereum and BNB Chain within just four months, with a circulation exceeding 2.1 billion USD, ranking among the top stablecoins globally.

##Project Background: Dual Support from Compliance Framework and Trump Family Resources

The positioning of USD1 is clear - it bridges traditional finance and compliant channels in crypto finance. Its reserve asset transparency is verified on-chain in real-time through the Chainlink PoR (Proof of Reserve) mechanism, with a minting and redemption process that has basically zero fees, significantly lowering the entry threshold for institutional and individual users.

The team composition integrates the dual genes of traditional finance and the crypto industry. Founder Zach Witkoff comes from a real estate family, operations head Zachary Folkman has experience in DeFi startups, and the deep involvement of Eric Trump, a member of the Trump family, provides political and resource backing for the project.

From October 2024 to March 2025, WLFI raised a total of 550 million USD through token sales, with investors including Tron founder Justin Sun and other notable figures, as well as the Abu Dhabi sovereign fund MGX.

Capital strength provides a solid foundation for its compliance operations and ecological expansion.

##USD1 Liquidity Pool Size

The rapid penetration of USD1 in the DeFi ecosystem is attributed to the strong support of early strategic partners. On April 12, 2025, DWF Labs announced the establishment of six USD1 liquidity pools, with a total value of 18 million USD, covering the two major public chains of Ethereum and BNB Chain.

These pools are diverse, consisting of stablecoin and mainstream cryptocurrency combinations:

• On the Ethereum chain: 1.5 million USDT / 1.5 million USD 1, 2.5 million USDC / 2.5 million USD 1, 490,000 USDf / 500,000 USD 1, 318.5 ETH / 500,000 USD 1
• On BNB Chain: 3 million USDT / 3 million USD1, 1,730 BNB / 1 million USD1

This initiative directly stimulated the market performance of USD1. Within one hour after the liquidity pool was announced, the trading volume of USD1 soared from an average daily volume of 2 million USD to 10 million USD, and the price rose by 5% from 0.99 USD to 1.04 USD.

The number of active addresses on the chain has increased by 30%, indicating a positive response from the market to its liquidity improvement.

##Exchange Layout: Gate Adds Trading Zone

Centralized exchanges are another core pillar of the USD1 expansion strategy. On May 22, 2025, USD1 was listed on Binance, and the trading volume exceeded 1.2 million coins within three hours of launch, showing significant market enthusiasm.

What's more noteworthy is that Gate.io exchange launched the USD1 trading zone on July 22, with the first batch of 9 popular trading pairs, including:

• BTC/USD1, ETH/USD1, SOL/USD1
• B/USD1, BNB/USD1, TRX/USD1
• DOGE/USD1, SUI/USD1, EGL1/USD1

This move further expands the trading scenarios for USD1, providing users with more diverse stablecoin trading options. USD1 has currently been listed on major platforms such as Bitget, forming a multi-tiered exchange ecosystem.

##Technical Features and Applications: Multi-chain Support and Zero Gas Fee Scenario Implementation

USD1 emphasizes transparency, low friction, and multi-chain compatibility in its technical architecture. It adopts a dynamic minting model: users deposit US dollars to generate an equivalent amount of USD1, which is simultaneously burned upon redemption. The circulation of tokens is entirely driven by market demand, with no pre-mining or team reserves.

The application scenario has realized the two-way integration of DeFi and physical consumption:

• DeFi ecosystem: Access to protocols such as Aave, Lista DAO, etc., supporting lending, liquidity mining.
• Cross-border payments: Applied to the $2 billion investment settlement of MGX in Abu Dhabi to Binance.
• Off-chain consumption: Direct payment at POS terminals using the WLFI accounting card.
• Zero Gas Fee Scenario: Included in the BNB Chain 0 Gas Fee program, enhancing the experience of small payments.

Currently, the circulation share of USD1 on the BNB Chain is nearly 90%, with an issuance of over 113 million coins, reflecting its ecological layout focus. Combined with PancakeSwap's over 19 million USD liquidity pool and Lista DAO's 20 million USD lending limit, its DeFi infrastructure has begun to take shape.

##Risk Warning: Political Affiliation and Centralized Governance

Despite the fact that USD1 has compliant custody and transparency mechanisms, there are still two main types of risks:

• Political connections: The high visibility of the Trump family may trigger stricter regulatory scrutiny, especially during the sensitive election period.
• Governance Centralization: Over 60% of WLFI's shares are controlled by the Trump family, indicating there is room for improvement in decision-making transparency and benefit distribution mechanisms.

Users should note that USD1 is pegged to the US dollar, but it is not a bank savings product. Its value stability relies on the compliance of reserve asset management and the depth of market liquidity.

##Summary: The New Forces of Compliant Stablecoins and Their Ecological Expansion Path

USD1 has carved out a differentiated path in the stablecoin red sea market through compliant asset custody, zero fee mechanisms, and top-tier resource integration. Its $18 million DeFi liquidity pool and rapid listing on exchanges such as Gate have validated the market's initial recognition of its model.

With the addition of the USD1 trading zone and the launch of 9 trading pairs on Gate.io, USD1 further expands its user coverage and trading scenarios. If it can continue to optimize governance decentralization and policy risk isolation, USD1 may become an important bridge connecting traditional finance and the crypto ecosystem.