coin-img-ETHETH+0.29%coin-img-BTCBTC+1.25%coin-img-SOLSOL+1.45%coin-img-XRPXRP+0.61%coin-img-COOCOO+354.15%coin-img-KFCKFC-41.16%coin-img-USDCUSDC-0.02%coin-img-XAUTXAUT+1.08%coin-img-ETHETH+0.29%coin-img-BTCBTC+1.25%coin-img-SOLSOL+1.45%coin-img-XRPXRP+0.61%coin-img-COOCOO+354.15%coin-img-KFCKFC-41.16%coin-img-USDCUSDC-0.02%coin-img-XAUTXAUT+1.08%coin-img-ETHETH+0.29%coin-img-BTCBTC+1.25%coin-img-SOLSOL+1.45%coin-img-XRPXRP+0.61%coin-img-COOCOO+354.15%coin-img-KFCKFC-41.16%coin-img-USDCUSDC-0.02%coin-img-XAUTXAUT+1.08%coin-img-ETHETH+0.29%coin-img-BTCBTC+1.25%coin-img-SOLSOL+1.45%coin-img-XRPXRP+0.61%coin-img-COOCOO+354.15%coin-img-KFCKFC-41.16%coin-img-USDCUSDC-0.02%coin-img-XAUTXAUT+1.08%

Trump-backed WLFI takes $75m stablecoin loan, sparking liquidity and collateral fears

On-chain data indicates World Liberty Financial (WLFI) borrowed $75 million in stablecoins via the Dolomite lending platform, pledging 5 billion WLFI tokens as collateral. More than $40 million of the borrowed funds was subsequently transferred to Coinbase Prime. The borrowing pushed the relevant lending pool to 100% utilization, leaving depositors temporarily unable to withdraw. WLFI's token price fell nearly 10%, setting a fresh all-time low. While the collateral's headline value is estimated at about $440 million, market participants warn that potential forced liquidations could further pressure the token. The episode is fueling scrutiny over whether the structure resembles a circular financing loop and how user funds may be affected.
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