Trump-Linked World Liberty Financial Borrows Millions Through Adviser's DeFi Lending Platform

World Liberty Financial (WLFI), the Trump family's crypto venture, has carried out a string of transactions on the DeFi lending protocol Dolomite that are drawing scrutiny over potential insider advantage, circular token mechanics and concentrated risk for other depositors. On-chain data reviewed by CoinDesk using Etherscan, Arkham and public wallet records show the sequence started on Feb. 8. WLFI's treasury deposited 14 million USD1—its own dollar-pegged stablecoin—into Dolomite as collateral and borrowed 11.4 million USDC. Minutes later, 11.45 million USDC was sent to a Coinbase Prime deposit address, according to Arkham. Two days after that, the treasury sent 12.5 million USD1 to a different Coinbase Prime deposit address. Coinbase Prime is commonly used to convert crypto to fiat or facilitate institutional OTC activity. That 12.5 million USD1 was not borrowed from Dolomite. It went directly from WLFI's treasury wallet to the exchange, effectively routing WLFI's own stablecoin straight to a fiat offramp. The WLFI token appeared later. On Feb. 20, the treasury deposited 890 million WLFI into Dolomite and borrowed 20 million USD1. On March 24, it added another 1.1 billion WLFI. In total, 1.99 billion WLFI is now posted as collateral on Dolomite, and the treasury has received about 31.4 million in stablecoins from the protocol across the two borrow events. Dolomite's role is closely tied to WLFI's internal network: Dolomite cofounder Corey Caplan is an adviser to World Liberty Financial. WLFI is now the largest supplier on Dolomite, with $458.9 million in supplied liquidity—about 55% of the protocol's $835.7 million total. A key pressure point is Dolomite's USD1 pool. USD1, with $4.6 billion in circulation, is the protocol's second-largest market, showing $180 million supplied and $167.5 million borrowed—around 93% utilization. The USD1 supply rate is 16.24% and the borrow rate is 9.18%, levels that indicate concentrated borrowing rather than broad-based organic demand. At that utilization rate, depositors who supplied USD1 cannot all withdraw at once. Liquidity is effectively constrained until the largest borrower repays. The collateral profile adds another layer of risk. WLFI trades with limited market depth relative to the size of the posted position. A sharp price drop could trigger liquidations, and forced selling could overwhelm liquidity, pushing the token down before collateral can be fully unwound. That scenario could leave Dolomite with bad debt, losses that would ultimately hit the same depositors whose funds may already be difficult to withdraw. Activity accelerated in April via a separate path. On April 2, WLFI's treasury transferred 2 billion WLFI to a Gnosis Safe proxy wallet at address 0x44a681DD, followed five days later by another 1 billion. Neither transfer went directly to Dolomite, and on-chain data has not yet shown where the tokens are headed. At WLFI's current price of $0.0888, the additional 3 billion tokens are valued at roughly $266 million. World Liberty Financial did not immediately respond to CoinDesk's request for comment.