World Liberty Financial (WLFI) rebutted criticisms questioning its massive loan positions on dolomite, asserting that these concerns are 'incorrect' and emphasizing its role as a core borrower within the protocol.
This project supported by the Trump family claimed that there is no liquidation risk for itself amid the rebuttals, and that additional collateral can be provided as needed.
WLFI's rebuttal and on-chain realities
WLFI's statement revealed several previously undisclosed figures. According to the project, the annualized revenue from USD1 stablecoin reaches $159.5 million.
Additionally, it was announced that over the past six months, 435.3 million WLFI tokens were repurchased at an average price of $0.1507, totaling $65.58 million in public market buybacks.
However, on-chain records indicate even broader facts. According to data tracked by Arkham, the treasury has provided collateral of approximately 5 billion WLFI tokens on dolomite, borrowing about $75 million in stablecoins.
Of this, over $40 million has moved to the Coinbase Prime wallet, suggesting the possibility of fiat currency conversion and over-the-counter trading.
"By becoming a core borrower, we are generating yields that make WLFI markets attractive to all other participants," World Liberty Financial stated in a social media post.
The reality faced by depositors
This borrowing has raised the utilization rate of the dolomite USD1 pool to over 93%, making it difficult for general depositors to withdraw quickly.
The collateral provided by WLFI accounts for about 55% of the total locked amount of $835.7 million in the protocol.
The project side indicated that it will announce a governance proposal to unlock tokens for initial holders next week.
It was also emphasized that the upgrade to USD1 will add gas-free transfers and support for AI agent payment protocols.
The focus for depositors, who are still trapped in the pool, remains whether this core borrower strategy will generate sustainable yields or concentrate systemic risk into a single insider.