Here's what the FUD crowd is missing entirely:By being the anchor borrower, we're generating the yield that makes WLFI Markets compelling for everyone else.Everyday users are earning outsized stablecoin yields right now — at a time when traditional markets are offering very…
The fear is that Dolomite’s protocol would be stuck with bad debt if it were forced to unwind World Liberty’s loans, recouping far less than the value of stablecoins borrowed. However, the Trump-backed crypto project pushed back against the notion that that could happen.
“We are nowhere near liquidation,” World Liberty said. “Even if markets moved dramatically against us, we'd simply supply more collateral. That's not a risk.”
The project framed its behavior as beneficial for users supplying stablecoins on Dolomite, whose co-founder Corey Caplan serves as a World Liberty advisor. The Trump-backed project said that Dolomite’s users are intentionally “earning outsized stablecoin yields right now—at a time when traditional markets are offering very little.”
Decrypt reached out to World Liberty for comment but did not immediately receive a response.
