World Liberty Financial’s WLFI falls 13% to $0.080 on liquidation fears

WLFI slid 13% in 24 hours to $0.080, a new low. Social posts flagged heavy WLFI-backed borrowing and liquidation risk.

Reports on X claimed World Liberty Financial posted 5 billion WLFI as collateral and borrowed about $75 million in stablecoins on Dolomite. More than $40 million tied to the borrow allegedly moved to Coinbase Prime. Some debt was reportedly repaid, with the position still framed as overcollateralized (source).

Skeptics also pointed to withdrawal pressure in USD1 pools. They said WLFI made up over 50% of Dolomite liquidity, which could magnify stress on fast moves.

In this setup, a falling WLFI price cuts collateral safety. That can raise the odds of forced actions later.

World Liberty responded, saying it is “one of the largest suppliers and borrowers on WLFI Markets.” It confirmed WLFI collateral and stablecoin borrows, and said it is “nowhere near liquidation” (company statement).

It said even with “dramatic” moves, it would add collateral. The firm framed the position as an anchor-borrow strategy to seed yield and attract users.

For early holders, the team announced governance steps. A proposal to unlock locked tokens will hit the forum next week for feedback, then go to a vote (company statement).

World Liberty added that USD1 has compliance-grade controls and frozen-funds tools. It said the upgrade is seamless, with balances and integrations intact.

It dismissed critics as “FUD,” and said the focus is on compounding outcomes.