Overview
- WLFI slid to fresh lows on Saturday after on-chain data showed World Liberty pledged about 5 billion WLFI on Dolomite to borrow roughly $75 million in stablecoins, with more than $40 million later moving to Coinbase Prime.
- Dolomite data shows WLFI now makes up about $428.9 million of supplied assets, or more than half of the platform’s liquidity, while utilization in its USD1 pool climbed above 93%, limiting withdrawals for depositors.
- World Liberty called warnings about liquidation and bad debt “FUD,” said the position sits well above risk thresholds, and argued it could post more WLFI as collateral while acting as an anchor borrower to boost lender yields.
- The team said it will seek community approval next week for a token-unlock plan that releases holdings in phases for early retail buyers, a move traders say could test prices if new supply reaches the market.
- Analysts flagged conflict-of-interest concerns because Dolomite’s co-founder advises World Liberty and warned that WLFI’s thin trading depth and high fully diluted valuation could make any large liquidation hard to execute without losses for lenders.