Gate News report: On April 9, WLFI, a crypto project co-founded by the Trump family, carried out multiple collateralized borrowing operations through the DeFi lending protocol Dolomite, drawing market attention to potential insider relationships, looped financing, and liquidity risk. Data shows that WLFI, using its self-issued stablecoin USD1 and the platform token WLFI as collateral, has cumulatively borrowed about $31.4 million in stablecoins, and moved some of the funds to a certain CEX, apparently for fiat conversion or over-the-counter trading. Corey Caplan, co-founder of Dolomite, also serves as an advisor to WLFI. WLFI has currently captured about 55% of the protocol’s deposit liquidity, significantly increasing concentration risk. In addition, the utilization rate of Dolomite’s USD1 pool is as high as about 93%, meaning ordinary deposit users may not be able to withdraw funds at any time. Because WLFI’s token market depth is limited, once the price falls and liquidation is triggered, it could lead to a chain of sell-offs and create bad-debt risk. On-chain data shows that in early April, WLFI transferred about 3 billion tokens (about $266 million) to multiple addresses, and the destination remains unclear. To date, WLFI has not responded to the related transactions.
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