WLFI's Large Borrowing Position on Dolomite Sparks Concerns About Illiquidity

World Liberty Financial (WLFI), a DeFi project backed by the Trump family, has been at the center of controversy over its large borrowing position on Dolomite.

The project used approximately $440 million worth of WLFI tokens as collateral to borrow around $65.4 million in USD1 and $10.3 million in USDC from the lending protocol.

Critics have expressed concerns about the illiquid nature of the collateral, which makes up more than half of Dolomite's total supplied assets.