Trump's World Liberty Financial borrowed millions from a protocol its own advisor co-founded
CoinDesk·1h ago·Fear
What Happened
World Liberty Financial, co-founded by the Trump family, deposited 1.99 billion WLFI tokens into DeFi protocol Dolomite as collateral and borrowed approximately 31.4 million stablecoins. Dolomite co-founder Corey Caplan advises World Liberty Financial. WLFI now comprises 55% of Dolomite's total supplied assets. The concentrated position raises concerns about depositor risk and token liquidation mechanics on the lending protocol.
Key Entities
World Liberty FinancialTrump familyDolomiteCorey CaplanWLFI tokenUSD1 stablecoinCoinDeskEtherscanCoinbase Prime