HTX WLFI 20% Yield Raises Questions
Users on platform X continue to question the source of the 20% annualized yield from HTX's previously launched WLFI flexible product, as well as whether customer-deposited WLFI tokens are being used.
HTX launched the WLFI Flexible product in September 2025, promoting instant interest calculation, flexible deposits and withdrawals with no limits, and a 20% annualized yield. Justin Sun responded at the time that the yield is entirely subsidized by the platform, similar to customer acquisition subsidies, and emphasized that user funds are transparently proven through Merkle Tree.
Critics pointed out that after the activity started, a large amount of WLFI was transferred from HTX-related addresses to Binance, questioning the source of the tokens and whether customer assets are involved. HTX representatives did not directly respond to specific token flow details.
WLFI is a token related to World Liberty Financial, and HTX was one of the early exchanges to launch high-yield activities to attract deposits and trading.
In terms of market mechanisms, high APY activities drive users to deposit specific tokens, with funds flowing to exchange earning products. The beneficiaries are the platform's liquidity and trading volume, while the burden falls on trust in the sustainability of yields and asset isolation.
Supplementary data shows that similar 20% APY activities have covered assets like USDD and TRUMP, which HTX claims is a market competition strategy.
Source: Public Information
ABAB AI Insight
HTX (formerly Huobi), under Justin Sun's leadership, has repeatedly acquired users and specific token deposits quickly through high APY earning products, with the 2025 WLFI activity being an example. Sun previously publicly positioned high yields as a platform subsidy for customer acquisition, rather than a risky product.
In terms of capital flow, the platform uses its own or subsidized funds to cover high interest, attracting users to deposit WLFI into earning pools, while large transfers from related addresses appear on-chain. The motivation is to increase trading volume and market share in the short term, subsequently recovering costs through trading fees.
Similar cases can be seen where multiple exchanges launch limited-time high-interest offers when new tokens are listed to attract locked liquidity. Currently, the stage is one of ongoing scrutiny regarding trust and transparency after high-interest customer acquisition.
The structural judgment indicates capital concentration: high APY disperses token holdings into exchange pools, with the mechanism being subsidies that lower user holding costs, accelerating the flow of tokens from personal wallets to the platform, while amplifying scrutiny pressure on internal liquidity and isolation mechanisms.
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