TLDR
- WLFI fell 12% to its lowest price since its launch in 2025
- World Liberty Financial used its WLFI token as collateral to borrow stablecoins on Dolomite DeFi
- The borrowing depleted the Dolomite pool of US$1, preventing other depositors from withdrawing funds
- WLFI’s Justin Sun’s Frozen property lost more than $11 million in value in one day
- WLFI’s Treasury repurchases are now approximately 48% lower on average
World Liberty Financial’s WLFI token fell about 12% in 24 hours, hitting its lowest price since its launch in 2025. The token traded at approximately $0.0818, extending weekly losses of 15% and monthly losses of 17%.
The sell-off came after CoinDesk reported that WLFI had deposited billions of its governance tokens as collateral for the Dolomite Lending Protocol. In exchange for this collateral, the project borrowed tens of millions of dollars in stablecoins, including USDC and its USD1 token.
On-chain data from Arykham confirmed that the project’s wallet secured 5 billion WLFI tokens on Dolomite, resulting in approximately $75 million in borrowed stablecoins. Soon after, more than $40 million of those borrowed funds were transferred to Coinbase Prime.
Day 44: We are seeing insane levels of crime again.
Yesterday, the Trump family’s cryptocurrency project deposited 5% of… $ WolfieThe total supply of dolomite and borrowed $75 million in stablecoins against it.
5% of the WLFI token supply is worth approximately $500 million.
Then just a few hours… pic.twitter.com/ACqGXpvckg
– Ethan DeFi (@EthanDeFi_) April 8, 2026
Borrowing pushed the Dolomites’ lending pool to full capacity. This left other depositors temporarily unable to withdraw their funds from the protocol.
Universal freedom responds to criticism
World Liberty Financial posted a thread on X defending its position. The team called these concerns “FUD” and said the project was “nowhere close to liquidation.”
“Even if markets move significantly against us, we will simply provide more guarantees,” the team said. Critics have pointed out that adding more WLFI to support a WLFI-assured position on a WLFI consultant-advised protocol deepens circularity risks, rather than resolves them.
We are one of the largest suppliers and borrowers in the WLFI markets.
Yes, we provided WLFI as collateral and borrowed stablecoins. No, we are not close to liquidation – and frankly, even if the markets moved significantly against us, we would simply offer more guarantees. This is not…– WLFI (@worldlibertyfi) April 9, 2026
Corey Kaplan, the project’s co-founder, serves as an advisor to World Liberty Financial, adding to conflict-of-interest concerns raised by analysts.
WLFI revealed that it spent $65.58 million to buy back 435.3 million WLFI tokens at an average price of $0.1507 over a six-month period. With the token now trading near $0.078, these buybacks are down approximately 48%.
Justin Sun takes a hit
Tron founder Justin Sun saw his WLFI frozen holdings drop by more than $11 million in one day. Sun originally invested $30 million in Global financial freedom in late 2024 and later built a position worth about $75 million.
World Liberty blacklisted Sun’s wallet last year after it moved nearly $9 million in WLFI, freezing its tokens. Blockchain analytics firm Bubblemaps estimates that Sun now holds about 545 million frozen WLFI tokens worth roughly $45 million — down more than $80 million from previous valuations.
An additional three billion WLFI tokens remain in the intermediate wallet after the treasury transfers on April 2 and April 7, currently valued at approximately $234 million.
The RSI is near 30, bordering on oversold territory, with the MACD showing continued downward momentum. The nearest support level is $0.079, with further downside targets at $0.075 and $0.070 if selling pressure continues.
