WLFI Deposits 2B Tokens on Dolomite for $31.4M Stablecoin Loans

World Liberty Financial, a cryptocurrency project backed by the Trump family, has deposited nearly 2 billion of its own WLFI governance tokens as collateral on the Dolomite lending protocol to borrow approximately 31.4 million in stablecoins, according to on-chain data analyzed by blockchain researchers. The transactions, which began in February and continued into March, have drawn scrutiny for concentrating risk on the platform and limiting liquidity for other users, amid a connection between Dolomite and a World Liberty advisor.

The sequence started on February 8, when World Liberty's treasury deposited 14 million USD1, its dollar-pegged stablecoin, into Dolomite and borrowed 11.4 million USDC against it. Within minutes, the borrowed USDC was transferred to a Coinbase Prime deposit address, a service often used for institutional trading or converting assets to fiat. Two days later, on February 10, the treasury sent an additional 12.5 million USD1 directly to another Coinbase Prime address, bypassing Dolomite.

WLFI tokens entered the transactions on February 20, with the treasury depositing 890 million WLFI and borrowing 20 million USD1. On March 24, it added 1.1 billion more...