World Liberty Financial (CRYPTO: WLFI) denied liquidation risk after pledging approximately 5 billion WLFI tokens and borrowing roughly $75 million in stablecoins on a decentralized finance protocol.
The Denial
WLFI fired back at critics questioning its massive lending position on Dolomite, calling the concerns “wrong” and framing its role as the protocol’s anchor borrower.
“We are one of the largest suppliers and borrowers on WLFI Markets. Yes, we supplied WLFI as collateral and borrowed stablecoins. No, we are nowhere near liquidation,” WLFI wrote.
“Even if markets moved dramatically against us, we’d simply supply more collateral,” they added.
By being the anchor borrower, WLFI claims it’s generating the yield that makes WLFI Markets compelling for everyone else. Everyday users are earning outsized stablecoin yields right now.
The On-Chain Reality
On-chain records tracked by Arkham show the treasury pledged approximately 5 billion WLFI tokens on Dolomite and borrowed roughly $75 million in stablecoins.
More than $40 million of that moved to Coinbase Prime wallets, suggesting fiat conversion or over-the-counter activity.
The borrowing pushed Dolomite’s USD1 pool utilization above 93%, making timely withdrawals difficult for ordinary depositors.
WLFI’s collateral now represents roughly 55% of the protocol’s $835.7 million total value locked.
The Buyback Claims
WLFI confirmed repurchasing 435.3 million WLFI tokens at an average price of $0.1507 over six months. That totals $65.58 million in open-market buybacks.
USD1, WLFI’s stablecoin, now has an annualized revenue run rate of $159.5 million, the project said.
WLFI announced a governance proposal coming next week to unlock tokens for early holders.
The project also highlighted a USD1 upgrade adding gasless transfers and support for AI agent payment protocols.
The Technical Collapse
WLFI is down 8.5%, crashing to fresh all-time lows. Since the September 2025 launch peak near $0.32, WLFI has lost over 75% of its value without a single sustained recovery.
The Supertrend at $0.10182 adds another resistance layer overhead.
Today’s candle has broken below the previous horizontal support around $0.088, which was the last meaningful floor on the chart.
Key support sits at $0.080, then $0.060 (uncharted territory). Resistance clusters at $0.09623 (20 EMA), then $0.10182 (Supertrend).
There is no technical support below the current price. Until WLFI reclaims $0.10+, the chart remains uninvestable.
Image: Shutterstock
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