World Liberty Financial Drains Its Own Pool, But Calls It “By Design”

World Liberty Financial (WLFI) has 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.

In its rebuttal, the Trump family-backed project insisted it faces no liquidation risk and can supply additional collateral at any time.

WLFI’s Response vs. the On-Chain Record

WLFI’s statement revealed several previously undisclosed figures. The project said its USD1 stablecoin now has an annualized revenue run rate of $159.5 million.

It also 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.

However, on-chain records tell a broader story. Data tracked by Arkham shows 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.

“By being the anchor borrower, we’re generating the yield that makes WLFI Markets compelling for everyone else,” wrote World Liberty Financial in a post.

What Depositors Face

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 project also announced a governance proposal coming next week to unlock tokens for early holders.

It highlighted a USD1 upgrade adding gasless transfers and support for AI agent payment protocols.

Whether the anchor borrower strategy generates sustainable yield or concentrates systemic risk in a single insider position remains the central question for depositors still locked in the pool.