Trump's World Liberty Financial borrowed millions from a protocol its own advisor co-founded

Onchain data shows WLFI deposited 5 billion of its own tokens as collateral to borrow stablecoins it then sent to Coinbase Prime, pushing a lending pool to 100% utilization and leaving depositors unable to withdraw. What to know : World Liberty Financial, a Trump family–backed crypto venture, pledged 5 billion WLFI tokens on the Dolomite lending platform to borrow $75 million in stablecoins, draining the protocol's USD1 pool and sending more than $40 million to Coinbase Prime. The WLFI token dropped nearly 10 percent to a record low as the oversized collateral position, nominally valued at about $440 million, left Dolomite exposed to potential bad debt because any forced liquidation would likely crash the thinly traded token's price. The maneuver, involving WLFI using its own governance token to borrow its own USD1 stablecoin from a protocol advised by a World Liberty Financial insider, has sparked concerns about circular economics and the use of user-funded pools to finance a single insider borrower.