Svmuu News: World Liberty Financial (WLFI), a crypto project co-founded by the Trump family, has executed multiple collateralized borrowing operations through the DeFi lending protocol Dolomite, raising market concerns about insider relationships, circular financing, and liquidity risks. Data shows that WLFI has successively used its self-issued stablecoin USD1 and platform token WLFI as collateral to borrow approximately $31.4 million in stablecoins. A portion of these funds was then transferred to Coinbase Prime, allegedly for fiat conversion or over-the-counter (OTC) trading.

Of note, Dolomite co-founder Corey Caplan also serves as a WLFI advisor. Currently, WLFI accounts for approximately 55% of the protocol's deposited liquidity, significantly increasing concentration risk. Furthermore, the USD1 pool utilization on Dolomite is as high as approximately 93%, meaning that ordinary depositors may not be able to withdraw funds at any time, facing liquidity lock-up risk. At the same time, due to the limited market depth of the WLFI token, a price drop triggering liquidation could lead to a cascading sell-off and bad debt risk, ultimately borne by other depositors.

On-chain data also shows that WLFI transferred approximately 3 billion tokens (worth about $266 million) to multiple addresses in early April, with their destination currently unclear. As of now, WLFI has not responded to the related transactions. (CoinDesk)