- On Wednesday, the price of World Liberty Financial (WLFI) fell nearly 10% following the new controversy surrounding the project and the large mortgage loan, dropping its price to $0.089.
- The Treasury borrowed 50.44 million USD1 from Dolomite using 3 billion WLFI tokens as collateral, which boosted the leverage of the loan to more than 100% and closed user funds. This makes withdrawing money difficult.
- According to technical indicators, cryptocurrency is currently in the oversold area.
On April 8, President Donald Trump-backed decentralized finance (DeFi) platform native cryptocurrency, World Liberty Financial (WLFI), the price dipped the most on the chart of the day.
According to CoinMarketCap priceThe price of WLFI has fallen by 10%, dropping its value from $0.099 to $0.089 with a market value of $2.82 billion. Daily sales are around $90.51 million.
WLFI Borrowing Sparks Pool Crisis
There are big questions being asked about World Liberty Financial in the DeFi community after its assets borrowed 50.44 million USD1 from Dolomite, the lending channel that runs its World Liberty Markets platform. The government of the economy posted about 3 billion WLFI control tokens as collateral for the loan, which happened in the last 5 days.
The transaction increased the amount of USD1 loans by more than 100%. Due to this, the available funds changed negatively by the signs of 232,000 USD1, which means that the pool ran out of money.
Deposit rates for users who gave USD1 shot to 35.81% annual return, while lending rates hit about 30%. These high rates were caused by the sudden lack of funds.
Users who have contributed USD1 for the benefit may experience delays when trying to withdraw their funds. The money is locked in a large treasury loan. The removal may be prohibited until the service is reduced or refunded.
World Liberty Fi has placed 3B $WLFI (~$300M) in the Dolomite lending protocol in the last 4 days.
Borrowed 65.4M $USD1 and 10.3M $USDC using $WLFI as collateral.
This makes up more than 50% of Dolomite’s TVL ($533M). pic.twitter.com/JPSSbshxlI
— Emmett Gallic (@emmettgallic) April 7, 2026
If the value of WLFI falls significantly, the value of the bond may fall below safe levels. This would trigger a forced sale of 50.44 million USD1. Selling such a large amount of WLFI at one time would cause a significant drop in the cryptocurrency. It can also affect the entire pool and affect users. The economy now makes up more than half of the total value locked in the Dolomite market.
World Liberty Financial launched Global Trading in January 2026 to allow users to borrow and borrow USD1 along with assets such as ETH, cbBTC, USDC, and WLFI.
Technical Indicators Point to Easing Pressure
According to TradingView, WLFI’s price is currently around 22, clearly in oversold territory. This confirms the recent sharp fall in cryptocurrency.
(From: TradingView)
Meanwhile, everything is going against the project, and things are going south for WLFI. The moving averages, including the 10-day and 20-day, now indicate oversold as the current price is below these lines.
At the moment, there is strong support around $0.096 from the end of the recent session, while the next resistance level appears around $0.100.
Recurring controversies surrounding the project have eroded investor confidence in the project. A drop below key support levels forced traders who viewed the signal as vulnerable after a long period of consolidation.
After yesterday’s meeting regarding the end of the US-Iran war, a Bitcoin (BTC) the price has also dropped below $71,000. However, it retains the management of exchange-traded funds (ETFs).
Despite the recent controversy, World Liberty Financial continues to expand its operations. The latest addition includes the Aster DEX based on USD1 as an asset to settle on international contracts.
Also Read: Morgan Stanley ETF Goes Live: Will Bitcoin Price Hit $75K Soon?
