Key Takeaways:
World Liberty Financial borrowed millions in stablecoins on Dolomite using 5 billion WLFI tokens as collateral in April 2026. DeFi analysts warn Dolomite’s USD1 pool faces bad debt risk, with WLFI collateral exceeding 50% of the protocol’s $836 million TVL. WLFI plans a governance vote next week to unlock tokens for early holders, with 80% of presale supply still locked. WLFI critiques have been going viral on social media. World Liberty Financial addressed the critics in a thread on X. WLFI Governance Token Drops 10% as DeFi Community Questions Dolomite Borrowing StrategyWLFI’s response framed the arrangement as strategic. The project said it had repurchased more than 435 million WLFI tokens at an average price of approximately $0.1507, totaling roughly $65.6 million in open-market buybacks over the past six months. USD1 circulation now exceeds $4 billion backed by U.S. Treasuries and cash equivalents, which WLFI cited as evidence of a $159.5 million annualized revenue run rate.
