{"id":70955,"date":"2026-04-10T17:32:07","date_gmt":"2026-04-10T17:32:07","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/world-liberty-financial-borrows-millions-on-dolomite-defends-wlfi-collateral-defi-bitcoin-news\/"},"modified":"2026-04-10T17:32:07","modified_gmt":"2026-04-10T17:32:07","slug":"world-liberty-financial-borrows-millions-on-dolomite-defends-wlfi-collateral-defi-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/world-liberty-financial-borrows-millions-on-dolomite-defends-wlfi-collateral-defi-bitcoin-news\/","title":{"rendered":"World Liberty Financial Borrows Millions on Dolomite, Defends WLFI Collateral \u2013 Defi Bitcoin News"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<p><strong>Key Takeaways:<\/strong><\/p>\n<ul>\n<li>World Liberty Financial borrowed millions in <span>stablecoins<\/span> on Dolomite using 5 billion WLFI tokens as collateral in April 2026.<\/li>\n<li> <span>DeFi<\/span> analysts warn Dolomite\u2019s USD1 pool faces bad debt risk, with WLFI collateral exceeding 50% of the protocol\u2019s $836 million TVL.<\/li>\n<li>WLFI plans a governance vote next week to unlock tokens for early holders, with 80% of presale supply still locked.<\/li>\n<li>WLFI critiques have been going viral on social media. World Liberty Financial addressed the critics in a thread on X.<\/li>\n<\/ul>\n<h2>WLFI Governance Token Drops 10% as <span>DeFi<\/span> Community Questions Dolomite Borrowing Strategy<\/h2>\n<p>The Trump family-backed <span>DeFi<\/span> project supplied approximately 5 billion WLFI governance tokens, nominally valued between $440 million and $460 million, as collateral to borrow roughly $65.4 million in USD1 and $10.3 million in USDC. <a href=\"https:\/\/debank.com\/profile\/0x44a681dd2ae212e6b8ed676b793ea802c7655fad\" target=\"_blank\" rel=\"noopener noreferrer\">Onchain data<\/a> shows that more than $40 million of those borrowed funds were subsequently moved to Coinbase Prime. Observers offered a decidedly <a href=\"https:\/\/x.com\/EthanDeFi_\/status\/2041905559033569435?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">cool reception<\/a>.<\/p>\n<p>WLFI launched World Liberty Markets in January 2026 as a lending and borrowing interface built directly on Dolomite. Dolomite co-founder Corey Caplan serves as an advisor and reported chief technology officer to WLFI. <a href=\"https:\/\/intel.arkm.com\/explorer\/address\/0x5be9a4959308A0D0c7bC0870E319314d8D957dBB\" target=\"_blank\" rel=\"noopener noreferrer\">Arkham\u2019s onchain records<\/a> show WLFI\u2019s treasury multisig routed the collateral across multiple wallets, including an intermediary address and a Gnosis Safe that transferred approximately 3 billion WLFI tokens to Dolomite in early April.<\/p>\n<figure id=\"attachment_805025\" aria-describedby=\"caption-attachment-805025\" style=\"width:1394px\" class=\"wp-caption aligncenter\"><figcaption id=\"caption-attachment-805025\" class=\"wp-caption-text\">Critics slammed the project\u2019s recent moves.<\/figcaption><\/figure>\n<p>Earlier deposits included roughly 1.99 billion WLFI tokens. The position now represents more than half of Dolomite\u2019s total supplied assets, which sit at an estimated $825 million to $836 million in total value locked. On April 9, 2026, WLFI\u2019s official account on X <a href=\"https:\/\/x.com\/worldlibertyfi\/status\/2042366923497697472?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">published a thread<\/a> addressing what it called community \u201cFUD.\u201d The project stated it was nowhere near <span>liquidation<\/span> and argued that its role as the anchor borrower was generating yield that made the protocol attractive for all depositors.<\/p>\n<p>\u201cBy being the anchor borrower, we\u2019re generating the yield that makes WLFI Markets compelling for everyone else,\u201d the statement <a href=\"https:\/\/x.com\/worldlibertyfi\/status\/2042366928698634712?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">read<\/a>. The team added:<\/p>\n<blockquote>\n<p>\u201cEveryday users are earning outsized <span>stablecoin<\/span> yields right now.\u201d<\/p>\n<\/blockquote>\n<p> <span>DeFi<\/span> analysts on X <a href=\"https:\/\/x.com\/DefiIgnas\/status\/2042520040562639186\" target=\"_blank\" rel=\"noopener noreferrer\">pointed<\/a> to several structural <a href=\"https:\/\/x.com\/StarPlatinum_\/status\/2042551256510505316?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">concerns<\/a>. WLFI trades with thin market depth relative to the size of the position, meaning a price decline toward <span>liquidation<\/span> thresholds could trigger forced sales that would further depress the token and prevent a clean unwind. <a href=\"https:\/\/x.com\/EthanDeFi_\/status\/2041905559033569435?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">Critics<\/a> compared the setup to past <span>DeFi<\/span> events involving CRV and Wonderland, where illiquid collateral led to bad debt that depositors could not recover.<\/p>\n<p>The <a href=\"https:\/\/defillama.com\/stablecoin\/world-liberty-financial-usd\" target=\"_blank\" rel=\"noopener noreferrer\">USD1<\/a> pool on Dolomite reported utilization rates near 93%, with supply rates spiking as high as 35% in earlier related activity. High utilization leaves limited <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-liquidity\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">liquidity<\/a> for depositors who want to exit the pool before the large borrower repays.<\/p>\n<figure id=\"attachment_805002\" aria-describedby=\"caption-attachment-805002\" style=\"width:1332px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-805002 size-full\" title=\"World Liberty Financial Borrows Millions on Dolomite, Defends WLFI Collateral\" src=\"https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/04\/screenshot-2026-04-10-at-7-48-23-am_nwmk.png\" alt=\"World Liberty Financial Borrows Millions on Dolomite, Defends WLFI Collateral\" width=\"1332\" height=\"712\" srcset=\"https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/04\/screenshot-2026-04-10-at-7-48-23-am_nwmk-300x160.png 300w, https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/04\/screenshot-2026-04-10-at-7-48-23-am_nwmk-1024x547.png 1024w, https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/04\/screenshot-2026-04-10-at-7-48-23-am_nwmk-768x411.png 768w, https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/04\/screenshot-2026-04-10-at-7-48-23-am_nwmk.png 1332w\" sizes=\"auto, (max-width: 1332px) 100vw, 1332px\"\/><figcaption id=\"caption-attachment-805002\" class=\"wp-caption-text\">WLFI\u2019s X response on April 9, 2026.<\/figcaption><\/figure>\n<p>WLFI\u2019s response framed the arrangement as strategic. The project said it had repurchased more than 435 million WLFI tokens at an average price of approximately $0.1507, totaling roughly $65.6 million in open-market buybacks over the past six months. USD1 circulation now exceeds $4 billion backed by U.S. Treasuries and cash equivalents, which WLFI cited as evidence of a $159.5 million annualized revenue run rate.<\/p>\n<p>The project also said a governance proposal would be posted to its forum within the week, followed by a community vote to unlock tokens for early holders. Approximately 80% of presale WLFI tokens remain locked, a <a href=\"https:\/\/x.com\/RhoRider\/status\/2042513444797321677?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">point<\/a> that drew repeated responses from community members in WLFI\u2019s thread and in other posts.<\/p>\n<p>The WLFI governance token <a href=\"https:\/\/markets.bitcoin.com\/crypto\/world-liberty-financial\" target=\"_blank\" rel=\"noopener noreferrer\">fell roughly 8-10%<\/a> to a record low <a href=\"https:\/\/x.com\/coingecko\/status\/2042542480730530088?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">following<\/a> coverage of the Dolomite position. Over a rolling seven-day window, losses reached approximately 14%. No <a href=\"http:\/\/www.bitcoin.com\/get-started\/understanding-liquidation-on-perp-dex\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">liquidation<\/a> has occurred as of April 10, 2026, and the project says the position remains overcollateralized.<\/p>\n<p>Separately, WLFI noted upgrades to USD1 that include gasless transfers and features designed for AI agents, signaling continued product development alongside the treasury activity. The latest episode reflects a recurring tension in <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-defi-decentralized-finance\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">DeFi<\/a> between governance token <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-leverage-in-crypto-trading\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">leverage<\/a>, protocol concentration, and aligned incentives in projects where the protocol builder, token issuer, and borrower are closely connected.<\/p>\n<\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/world-liberty-financial-borrows-millions-on-dolomite-defends-wlfi-collateral\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways: World Liberty Financial borrowed millions in stablecoins on Dolomite using 5 billion WLFI tokens as collateral in April 2026. DeFi analysts warn Dolomite\u2019s USD1 pool faces bad debt risk, with WLFI collateral exceeding 50% of the protocol\u2019s $836 million TVL. WLFI plans a governance vote next [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":70956,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/70955"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=70955"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/70955\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/70956"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=70955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=70955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=70955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}