Contagion
What the USD1 / WLFI Attack Reveals About Small Stablecoin Failure Modes and Contagion Risk
A coordinated attack pushed WLFI’s USD1 peg off-kilter and sent shockwaves through smaller markets — exposing structural weaknesses in non-USD-pegged stablecoins and concentration risk among tiny issuers. This analysis unpacks the timeline, market impact, contagion pathways, and what regulated players should change to limit counterparty exposure.
Published at 2026-02-24 15:24:34
DeFi
All DeFi postsBitcoin
All Bitcoin postsLiquidity
All Liquidity posts- Institutions, Cash Hoarding, and BTC Liquidity: Interpreting Binance Balances and State Reserve Bets
- Why Five Straight Weeks of US Spot Bitcoin ETF Outflows Matter for Price Discovery and Macro Risk
- Stablecoin Health and Liquidity Risk: How a 1% Slip and Tether's CNH Phaseout Could Tighten BTC Markets