World Liberty Financial Borrows Millions on Dolomite, Defends WLFI Collateral
Key Takeaways: WLFI’s response framed the arrangement as strategic. The project said it had repurchased more than 435 million WLFI tokens at an average price of approximately $0.1507, totaling roughly $65.6 million in open-market buybacks over the past six months. USD1 circulation now exceeds $4 billion backed by U.S. Treasuries and cash equivalents, which WLFI cited as evidence of a $159.5 million annualized revenue run rate. The project also said a governance proposal would be posted to its forum within the week, followed by a community vote to unlock tokens for early holders. Approximately 80% of presale WLFI tokens remain locked, a point that drew repeated responses from community members in WLFI’s thread and in other posts. The WLFI governance token fell roughly 8-10% to a record low following coverage of the Dolomite position. Over a rolling seven-day window, losses reached approximately 14%. No liquidation has occurred as of April 10, 2026, and the project says the position remains overcollateralized. Separately, WLFI noted upgrades to USD1 that include gasless transfers and features designed for AI agents, signaling continued product development alongside the treasury activity. The latest episode reflects a recurring tension in DeFi between governance token leverage, protocol concentration, and aligned incentives in projects where the protocol builder, token issuer, and borrower are closely connected.About Author
