- On Wednesday, the price of World Liberty Financial (WLFI) collapsed by about 10% after new controversy over the project and a major Treasury loan event, sending its value down to $0.089.
- The Treasury borrowed US$50.44 million from Dolomite using 3 billion WLFI tokens as collateral, boosting the lending pool’s utilization by over 100% and locked user funds. This makes withdrawals difficult.
- According to technical indicators, the cryptocurrency is currently in the oversold zone.
On April 8, the price of the native cryptocurrency of the decentralized finance (DeFi) platform backed by US President Donald Trump, World Liberty Financial (WLFI), fell significantly on the daily chart.
according to CoinMarketCapWLFI’s price fell by more than 10%, its value falling from $0.099 to $0.089 with a market capitalization of about $2.82 billion. The daily trading volume is approximately $90.51 million.
WLFI borrowing sparks pool crisis
There are serious questions currently being raised about World Liberty Financial in Decentralized finance The community after its treasury borrowed US$50.44 million from Dolomite, the lending protocol that runs its World Liberty Markets platform. The Treasury provided nearly 3 billion WLFI governance tokens as collateral for the loan, which happened over the past five days.
This transaction boosted the utilization rate of the USD lending pool to over 100%. As a result, the available liquidity became negative at around 232,000 USD1 tokens, meaning that the pool simply ran out of money.
Deposit rates for users who deposited $1 rose to a 35.81% annual return, while borrowing rates reached around 30%. These high rates came from a sudden lack of liquidity.
Users who gave $1 to earn a return may now experience delays when trying to withdraw their funds. These funds are locked within the Treasury’s large borrowing position. Withdrawals can remain restricted until that position is reduced or paid off.
World Liberty Fi made a 3B deposit $ Wolfie (~$300 million) in the Dolomite Lending Protocol in the last 4 days.
They borrowed $65.4 million and $10.3 million USD/USD using $ Wolfie As a guarantee.
This constitutes more than 50% of the TVL for dolomite ($533 million). pic.twitter.com/JPSSbshxlI
– Emmett Gallic (@emmettgallic) April 7, 2026
If the price of WLFI falls sharply, the value of the collateral may fall below safe levels. This could lead to a forced sale of a position worth US$50.44 million. Selling such a large amount of WLFI at once could create significant downward pressure on the cryptocurrency. It may also affect the entire group and affect users. Treasury collateral now makes up more than half of the total value locked in the dolomite market.
World Liberty Financial launched World Liberty Markets in January 2026 to allow users to lend and borrow $1 USD along with assets such as ETH, cbBTC, USDC, and WLFI.
Technical indicators indicate downward pressure
According to TradingView, WLFI price is currently located near 22, which is clearly oversold. This confirms the recent sharp decline in the cryptocurrency.
(source: TradingView)
Right now, everything is going against the project, and things are heading south for WLFI. Moving averages, including 10 days and 20 days, are now indicating extreme sell signals as the current price falls below these trend lines.
Currently, there is strong support at around $0.096 from the lows of the last session, while the next resistance level appears around $0.100.
Successive controversies over the project have exhausted investors’ confidence in the project. The drop below key support areas forced sellers who viewed the symbol as vulnerable after a long consolidation zone.
After yesterday’s demonstration regarding a ceasefire in the US-Iranian war, Bitcoin (BTC) The price also fell below $71,000. However, it still has steady institutional inflows through exchange-traded funds (ETFs).
Despite recent controversies, World Liberty Financial is continually expanding its operations. Recent integrations include the Aster DEX adopting USD1 as a mandatory settlement asset for real-world perpetual asset contracts.
Read also: Morgan Stanley ETF Startup: Will Bitcoin Hit $75K Soon?
