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World Liberty Financial borrows $75M using its own tokens, straining DeFi protocol Dolomite's liquidity.

Market News
10 Apr 2026
Unchained
View Source
Bearish
pluang ai news

World Liberty Financial (WLFI) borrowed $75 million in stablecoins by pledging 5 billion of its own WLFI tokens as collateral on the Dolomite DeFi lending protocol, which was co-founded by a WLFI advisor. This large loan pushed Dolomite's USD1 pool utilization to 93%, making withdrawals difficult for ordinary depositors and raising conflict-of-interest concerns due to the advisor's dual role. The move caused WLFI's token price to drop nearly 10% and exposed the protocol to risks of forced selling and bad debt. Additionally, WLFI faces scrutiny over its stablecoin's integration with a blockchain project linked to a sanctioned founder.

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