[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  JIN. $WLFI #USD1 🇰🇷 [@miji3456](/creator/twitter/miji3456) on x 1907 followers Created: 2025-07-22 16:20:18 UTC $WLFI #USD1 WLFI DeFi app interest revenue structure. Based on the GENIUS Act. 📢 [2025 GENIUS Act & BTC/ETH Collateral Loan Interest] Full Breakdown 🚀 The GENIUS Act, passed in 2025, is reshaping the US stablecoin market. Its core idea? To ban stablecoins from working like yield-bearing deposit products. Why? If stablecoins pay interest just for holding them, it could drain deposits from banks and shake the financial system. So the Act restricts issuers to only issuing, redeeming, and safely managing reserves — no direct or indirect yield payouts to holders. ✅ GENIUS Act Key Points Licensed stablecoin issuers (and foreign issuers) cannot pay interest/yield directly or indirectly to holders. Reserves must be held in safe assets like US T-bills. Rehypothecation (reusing reserves as collateral) is banned. Goal: prevent bank run risk + protect financial stability. DeFi protocols are not directly regulated — smart contracts ≠ issuers. 🔍 What about DeFi? The big question: What happens when you borrow stablecoins using BTC or ETH as collateral? Example: Aave, Compound, and other DeFi lending markets. ✔️ How it works: User deposits BTC/ETH → borrows stablecoins → pays interest → lenders receive interest. ➡️ The yield comes from protocol mechanisms, not from the stablecoin issuer. ➡️ So the GENIUS Act’s ban on “issuer paying yield” does not apply. ➡️ BTC/ETH used as collateral are outside the Act’s scope. 📌 Included vs. Not Included (List Version) ✅ Included: Issuer paying interest directly to stablecoin holders. ❌ Not Included: Interest generated by DeFi lending (created by smart contracts). Interest on loans collateralized with BTC/ETH. ✅ Quick Takeaway **- Issuer → holder direct yield = banned → stablecoins become ‘safe digital dollars’. DeFi loan interest = not banned → it’s protocol-generated, issuer not involved! BTC/ETH collateralized loan interest = not banned → the Act does not touch non-stablecoin collateral! Bottom line: Yield flows to WLFI DeFi!**  XXX engagements  **Related Topics** [usd1](/topic/usd1) [stablecoins](/topic/stablecoins) [coins stablecoin](/topic/coins-stablecoin) [wlfi](/topic/wlfi) [$wlfi](/topic/$wlfi) [coins made in usa](/topic/coins-made-in-usa) [Post Link](https://x.com/miji3456/status/1947693195091149101)
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JIN. $WLFI #USD1 🇰🇷 @miji3456 on x 1907 followers
Created: 2025-07-22 16:20:18 UTC
$WLFI #USD1
WLFI DeFi app interest revenue structure. Based on the GENIUS Act.
📢 [2025 GENIUS Act & BTC/ETH Collateral Loan Interest] Full Breakdown 🚀
The GENIUS Act, passed in 2025, is reshaping the US stablecoin market. Its core idea? To ban stablecoins from working like yield-bearing deposit products.
Why? If stablecoins pay interest just for holding them, it could drain deposits from banks and shake the financial system. So the Act restricts issuers to only issuing, redeeming, and safely managing reserves — no direct or indirect yield payouts to holders.
✅ GENIUS Act Key Points
Licensed stablecoin issuers (and foreign issuers) cannot pay interest/yield directly or indirectly to holders.
Reserves must be held in safe assets like US T-bills.
Rehypothecation (reusing reserves as collateral) is banned.
Goal: prevent bank run risk + protect financial stability.
DeFi protocols are not directly regulated — smart contracts ≠ issuers.
🔍 What about DeFi?
The big question: What happens when you borrow stablecoins using BTC or ETH as collateral?
Example: Aave, Compound, and other DeFi lending markets.
✔️ How it works:
User deposits BTC/ETH → borrows stablecoins → pays interest → lenders receive interest. ➡️ The yield comes from protocol mechanisms, not from the stablecoin issuer. ➡️ So the GENIUS Act’s ban on “issuer paying yield” does not apply. ➡️ BTC/ETH used as collateral are outside the Act’s scope.
📌 Included vs. Not Included (List Version)
✅ Included:
Issuer paying interest directly to stablecoin holders.
❌ Not Included:
Interest generated by DeFi lending (created by smart contracts).
Interest on loans collateralized with BTC/ETH.
✅ Quick Takeaway
**- Issuer → holder direct yield = banned → stablecoins become ‘safe digital dollars’.
DeFi loan interest = not banned → it’s protocol-generated, issuer not involved!
BTC/ETH collateralized loan interest = not banned → the Act does not touch non-stablecoin collateral!
Bottom line: Yield flows to WLFI DeFi!**
XXX engagements
Related Topics usd1 stablecoins coins stablecoin wlfi $wlfi coins made in usa