World Liberty Financial Drains Its Own Pool, But Calls It “By Design”
World Liberty Financial (WLFI) has fired again at critics questioning its large lending place on Dolomite, calling the considerations “unsuitable” and framing its position because the protocol’s anchor borrower.
In its rebuttal, the Trump family-backed undertaking insisted it faces no liquidation danger and may provide further collateral at any time.
WLFI’s Response vs. the On-Chain Record
WLFI’s assertion revealed a number of beforehand undisclosed figures. The undertaking mentioned its USD1 stablecoin now has an annualized income run charge of $159.5 million.
It additionally confirmed repurchasing 435.3 million WLFI tokens at a mean worth of $0.1507 over six months. That totals $65.58 million in open-market buybacks.
However, on-chain information inform a broader story. Data tracked by Arkham shows the treasury pledged approximately 5 billion WLFI tokens on Dolomite and borrowed roughly $75 million in stablecoins.
More than $40 million of that moved to Coinbase Prime wallets, suggesting fiat conversion or over-the-counter exercise.
“By being the anchor borrower, we’re producing the yield that makes WLFI Markets compelling for everybody else,” wrote World Liberty Financial in a publish.
What Depositors Face
The borrowing pushed Dolomite’s USD1 pool utilization above 93%, making well timed withdrawals tough for unusual depositors.
WLFI’s collateral now represents roughly 55% of the protocol’s $835.7 million whole worth locked.
The undertaking additionally introduced a governance proposal coming subsequent week to unlock tokens for early holders.
It highlighted a USD1 improve including gasless transfers and help for AI agent cost protocols.
Whether the anchor borrower technique generates sustainable yield or concentrates systemic danger in a single insider place stays the central query for depositors nonetheless locked within the pool.
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