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World Liberty Financial responded to CoinDesk's reporting by saying it would "simply proviso much collateral" if markets moved against it, a connection that did not reassure holders.
Updated Apr 10, 2026, 1:36 p.m. Published Apr 10, 2026, 1:14 p.m.
World Liberty Financial's WLFI token fell astir 12% successful the past 24 hours aft the Trump-linked crypto task published a thread connected X defending its lending presumption connected Dolomite, the DeFi protocol whose co-founder advises WLFI.
The thread came successful effect to CoinDesk's reporting that WLFI had deposited its ain governance token arsenic collateral, borrowed stablecoins against it, and drained the USD1 lending excavation to the constituent wherever different depositors could not withdraw.
WLFI did not quality the transactions but alternatively argued that the presumption was intentional and beneficial.
"We are 1 of the largest suppliers and borrowers connected WLFI Markets," the X relationship posted. "Yes, we supplied WLFI arsenic collateral and borrowed stablecoins. No, we are obscurity adjacent liquidation, and frankly, adjacent if markets moved dramatically against us, we'd simply proviso much collateral."The connection that WLFI would adhd much of its ain token arsenic collateral to debar liquidation further highlights, alternatively than resolves, the interest raised successful CoinDesk's reporting.
Adding much WLFI to backmost a presumption denominated successful WLFI connected a protocol advised by WLFI's ain advisor is simply a signifier of circularity that investors whitethorn privation to support way of.
WLFI framed its relation arsenic "anchor borrower," saying the borrowing generates output for different users astatine a clip erstwhile accepted markets connection little. The squad disclosed $65.58 cardinal successful open-market buybacks of 435.3 cardinal WLFI tokens astatine an mean terms of $0.1507 implicit the past six months, and said a governance connection to unlock tokens for aboriginal holders would beryllium posted adjacent week.
The token is present trading astir 48% beneath the buyback average, meaning WLFI's ain treasury purchases are importantly underwater.
WLFI token terms hits all-time lows (CoinDesk)WLFI has present deed its lowest level since its 2025 launch.
Meanwhile, 3 cardinal further WLFI tokens beryllium successful an intermediary wallet aft the treasury transferred them connected April 2 and April 7. That stash is worthy astir $234 cardinal arsenic of existent prices, down from $266 cardinal a week ago.
The mathematics works against WLFI connected each broadside if those tokens travel the aforesaid way into Dolomite. Lower prices mean little borrowing powerfulness per token, and depositing much tokens to get much stablecoins from a excavation that is already astir drained makes it harder for different depositors to withdraw. The collateral backing the presumption becomes adjacent much concentrated successful a token that conscionable mislaid 12% successful a day.
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