WLFI Token Crashes After Record-Breaking Self-Collateralized Loan

The sudden collapse of the WLFI token highlights critical vulnerabilities in decentralized finance (DeFi) risk management practices.

World Liberty Financial's decision to use billions of its native WLFI tokens as primary collateral for a $75 million loan has led to an 83% decline in the token's value, reaching a record low of $0.07714.

The incident raises concerns about circular risk and concentrated exposure within DeFi protocols.