{"id":25682,"date":"2026-04-11T10:48:48","date_gmt":"2026-04-11T10:48:48","guid":{"rendered":"https:\/\/bitunikey.com\/news\/wlfi-drops-to-record-low-after-token-backed-loan-draws-scrutiny\/"},"modified":"2026-04-11T10:48:54","modified_gmt":"2026-04-11T10:48:54","slug":"wlfi-drops-to-record-low-after-token-backed-loan-draws-scrutiny","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/wlfi-drops-to-record-low-after-token-backed-loan-draws-scrutiny\/","title":{"rendered":"WLFI drops to record low after token-backed loan draws scrutiny"},"content":{"rendered":"<div class=\"post-detail__content blocks\">\n<p><strong>WLFI (WLFI) fell to a new all-time low on Saturday after onchain data showed wallets linked to World Liberty Financial used large token holdings to borrow stablecoins.\u00a0<\/strong><\/p>\n<div id=\"cn-block-summary-block_b9125764964c497887fb3c985cc4be48\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>WLFI fell to a record low after a self-backed loan raised fresh market risk questions.<\/li>\n<li>Onchain data showed linked wallets used 5 billion WLFI tokens to borrow stablecoins on Dolomite.<\/li>\n<li>World Liberty said its positions remain safe and framed the lending move as yield strategy.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>The move added pressure to the Trump-linked project as traders weighed the risk tied to using its own token as collateral.<\/p>\n<p>WLFI dropped to about $0.077, its lowest level on record, before trading near $0.079. The token is now down 76% from its peak of $0.33 reached in September, based on CoinGecko data.<\/p>\n<figure class=\"wp-block-image size-large\"><figcaption class=\"wp-element-caption\">WLFI price chart | Source: CoinGecko<\/figcaption><\/figure>\n<p>The decline followed reports that wallets tied to World Liberty Financial deposited about 5 billion WLFI tokens on Dolomite. The same position was then used to borrow $75 million in USD1 and USDC.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<p>Arkham data <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/intel.arkm.com\/explorer\/address\/0x5be9a4959308A0D0c7bC0870E319314d8D957dBB\" target=\"_blank\">showed<\/a> that more than $40 million of the borrowed funds later moved to Coinbase Prime. That transfer drew more attention to the project\u2019s financing activity and the size of its exposure.<\/p>\n<p>The market reaction was swift because WLFI is not viewed as a deeply liquid asset. A large collateral position tied to price swings can increase pressure if the token falls further.<\/p>\n<h1 class=\"wp-block-heading\"><strong>Analysts question liquidation risk on Dolomite<\/strong><\/h1>\n<p>DeFi users on X said the structure could create risk for lenders if WLFI moves closer to liquidation levels. Some pointed to the token\u2019s high fully diluted valuation and limited trading depth as a weak point. <\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cWLFI has almost a $10 billion FDV, but it is not an extremely liquid asset,\u201d\u00a0wrote one user. \u201cSo imagine what would happen if 5% of WLFI\u2019s total supply would suddenly need to be sold to liquidate the position.\u201d<\/p>\n<\/blockquote>\n<p>Another user <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/x.com\/krassenstein\/status\/2042620529308213491\">compared<\/a> the setup to borrowing cash against self-created value. The user said, <\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cIt\u2019s the financial equivalent of printing casino chips, borrowing cash against them, and telling everyone else not to panic because the house still believes in the chips.\u201d<\/p>\n<\/blockquote>\n<p>Dolomite remains a smaller player in DeFi lending. DefiLlama <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/defillama.com\/protocols\/lending\" target=\"_blank\">ranks<\/a> it 19th among lending platforms by total value locked, which added more focus to the size of the WLFI-linked position.<\/p>\n<h2 class=\"wp-block-heading\"><strong>World Liberty defends the strategy<\/strong><\/h2>\n<p>World Liberty Financial <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/x.com\/worldlibertyfi\/status\/2042366923497697472\">responded<\/a> on social media and said its positions remain well above liquidation thresholds. The project described itself as an \u201canchor borrower\u201d and said the strategy supports yield generation.<\/p>\n<p>The team wrote,\u00a0<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cEveryday users are earning outsized stablecoin yields right now \u2014 at a time when traditional markets are offering very little.\u201d It added, \u201cThat\u2019s the whole point.\u201d<\/p>\n<\/blockquote>\n<p>The project also said it plans to introduce a governance proposal for early retail holders. The proposal would replace immediate token access with a phased vesting schedule, subject to a community vote.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<div class=\"cn-block-disclaimer\">\n<div class=\"cn-block-disclaimer__icon\">\n            <svg class=\"icon icon-info\" aria-hidden=\"true\"><use xlink:href=\"#icon-info\"><\/use> <\/svg>        <\/div>\n<p class=\"cn-block-disclaimer__content\">\n            Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.        <\/p>\n<\/p><\/div>\n<p><!-- .cn-block-disclaimer --><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>WLFI (WLFI) fell to a new all-time low on Saturday after onchain data showed wallets linked to World Liberty Financial used large token holdings to borrow stablecoins.\u00a0 Summary WLFI fell&hellip;<\/p>\n","protected":false},"author":1,"featured_media":1477,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-25682","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/25682","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=25682"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/25682\/revisions"}],"predecessor-version":[{"id":25683,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/25682\/revisions\/25683"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/1477"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=25682"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=25682"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=25682"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}