A Simple Upgrade: sWLFI as Collateral

General
1

Hey everyone, I just dropped a proposal addition on the new WLFI governance thread from today

It’s about turning staked WLFI into something a bit more useful, not just sitting there. idea is a non-transferable “sWLFI” that still keeps the long-term alignment, but can also be used inside WLFI Markets. potentially even borrow against it, with the right guardrails

Felt like a clean way to balance commitment + capital efficiency without breaking the intent of staking

would love thoughts, pushback, whatever

link: Proposal: Early Supporter & Founder/Team/Partner Token Unlock - #125 by Chief

Edit: here is what I posted in the other proposal thread:

Proposed Addition: Staked WLFI (sWLFI) Representation & Utility

To further strengthen the WLFI Governance Staking System and align with its long-term objectives, I propose formalizing the representation and utility of staked positions within the ecosystem:

  • Staked WLFI positions should be represented as a non-transferable (soulbound) staking token (e.g., sWLFI), issued via the staking router

  • This token should be integrated directly into WLFI Markets (powered by Dolomite) as a recognized collateral asset

  • sWLFI may enable borrow functionality against staked positions, subject to appropriate risk parameters and governance approval

Rationale

This addition preserves the core intent of the staking system:

  • Maintains long-term alignment (non-transferable, tied to the staker)

  • Prevents secondary market speculation on governance positions

  • Encourages continued participation rather than exit behavior

At the same time, it unlocks capital efficiency:

  • Allows participants to access liquidity without unstaking

  • Deepens WLFI Markets liquidity and utility

  • Reinforces USD1 demand through borrow-side activity

Strategic Impact

This would position staked WLFI not just as a governance requirement, but as a productive on-chain primitive within the WLFI ecosystem — strengthening both governance participation and capital formation.

This addition is fully consistent with the proposal’s stated goals of incentivizing long-term participation, increasing USD1 usage, and deepening integration with WLFI Markets.

2 Likes
2

I believe this is already in the works. This screen grab is from the Dolomite Discord:

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1 Like
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I support any decision that might be made to improve the project. We can’t let negative people influence us. The project is important, so anything that contributes to its success is welcome.

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I thought that was the whole point. Didn’t understand why people wanted to unlock and sell.

5

going moon lets see gys : more here

6

Does this mean the plan for a centralized custodial staking system? Would be a terrible idea.

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vry dif to say guys: what will happen now