World Liberty Financial Faces Scrutiny Over Concentrated Borrowing at Dolomite

World Liberty Financial (WLFI) has executed a series of complex borrowing maneuvers through the decentralized finance (DeFi) protocol Dolomite, sparking concerns over insider access and systemic risk within the platform. The relationship is highlighted by the fact that Corey Caplan, a co-founder of Dolomite, serves as an advisor to the Trump-family venture. This overlap has resulted in a high concentration of assets, with WLFI tokens now representing approximately 55% of Dolomite's total supply liquidity, totaling $458.9 million of the protocol's $835.7 million total. On-chain data reveals that the WLFI treasury deposited 1.99 billion WLFI tokens as collateral to borrow roughly 31.4 million in stablecoins across multiple episodes. In early February, the treasury deposited 14 million USD1 to borrow 11.4 million USDC, which was quickly moved to a Coinbase Prime address. Further transactions in February and March saw the deposit of nearly 2 billion WLFI tokens to secure additional stablecoin loans. Analysts warn that the structural integrity of Dolomite's USD1 pool is at risk, with a utilization ratio of approximately 93%. At this level, ordinary depositors may find their funds effectively locked until the large borrower repays. Furthermore, because WLFI trades with limited market depth, a sharp price decline could trigger a liquidation event that crashes the token price, potentially leaving the protocol with bad debt. Recent activity in April shows the WLFI treasury transferring an additional 3 billion tokens, valued at approximately $266 million at a price of $0.0888, to a Gnosis Safe proxy wallet. The final destination of these tokens has not yet been identified.