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World Liberty’s DeFi Loans on Advisor-Linked Dolomite Squeeze Liquidity

The setup concentrates risk on Dolomite depositors.

Overview

  • World Liberty Financial rejected warnings about possible liquidations as “FUD” and said it can add more collateral if markets move against it.
  • Onchain records show the treasury borrowed stablecoins on Dolomite first against its USD1 stablecoin and later against 1.99 billion WLFI tokens, raising about $31.4 million in total.
  • Blockchain tracing found that 11.45 million USDC from the first loan reached a Coinbase Prime deposit address within minutes of the borrow.
  • Dolomite’s USD1 market shows very high use, with about $180 million supplied versus $167.5 million borrowed, which limits how quickly depositors can withdraw.
  • The borrower-protocol link is close because Dolomite co-founder Corey Caplan advises World Liberty, and investigators are tracking a further 3 billion WLFI moved to a Gnosis Safe wallet with no public destination yet.