WLFI Drops to Record Low After Token-Backed Borrowing Raises Risk Concerns
Airfind news item
By Amin Haqshanas
Published on April 11, 2026.
Crypt users have expressed concern after the World Liberty Financial (WLFI) platform used large amounts of its own tokens to secure loans. The token hit a new low of around $0.07714 on Saturday, down 83% from its peak of $1.46 in September. This comes after it was revealed that wallets linked to WLFI deployed substantial WLFLFL holdings as collateral on Dolomite, a decentralized lending platform co-founded by the project’s chief technology officer, Corey Caplan. The large collateral position has raised concerns among DeFi analysts, who warn it could create risks for lenders if WLIF's price falls and approaches liquidation levels. World Liberty acknowledged the lending activity but maintained its positions remained above liquidation thresholds.
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