The post WLFI Hits New Low as World Liberty Defends Dolomite Loans appeared on BitcoinEthereumNews.com.

WLFI hit a new low as World Liberty weighed a token unlock plan for early holders. World Liberty defended $150M in Dolomite loans and denied liquidation concerns. Arkham showed $400M in WLFI on Dolomite, raising concentration risk concerns. World Liberty Financial’s governance token fell to a new low on Friday after the Trump-backed crypto project said it was preparing a proposal to unlock WLFI for early holders. The decline came as the platform also defended $150 million in stablecoin loans linked to Dolomite. WLFI traded near $0.0800, down around 15% over the past day. Its market capitalization also dropped by $427 million to $2.54 billion from nearly $3 billion. World Liberty Defends Dolomite Loans Amid Debt Fears The slide followed renewed debate over the project’s borrowing activity. On Thursday, World Liberty responded to what it called “FUD” on X after using decentralized finance protocol Dolomite for loans denominated in USDC. The main concern was whether Dolomite could be left with bad debt if those loans had to be unwound. Critics said the protocol might recover far less than the value of the stablecoins borrowed. World Liberty rejected that argument. The project said it was “nowhere near liquidation.” It also said that if markets moved sharply against its position, it would add more collateral. World Liberty said that the outcome was not a risk. World Liberty also said its activity benefits users supplying stablecoins on Dolomite. It said those users are earning outsized stablecoin yields. The project added that traditional markets are offering very little by comparison. The response did not end the criticism. In a post on X, DefiIgnas said the project had not explained how it would repay the stablecoin debt. He then argued that it could not do so. DefiIgnas also said WLFI is too illiquid to sell…

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Filed under: News - @ April 11, 2026 12:28 am