Trump's World Liberty Financial borrowed millions from a protocol its own advisor co-founded
CoinDesk
World Liberty Financial faces scrutiny after borrowing millions from Dolomite, a protocol co-founded by one of its own advisors.Summary
World Liberty Financial (WLFI), a crypto venture linked to the Trump family, has utilized the lending protocol Dolomite to borrow millions in stablecoins by using its own tokens as collateral. Investigations reveal that Dolomite co-founder Corey Caplan serves as an advisor to WLFI, raising concerns regarding insider conflicts, circular token economics, and systemic risk. The aggressive borrowing has caused high utilization rates in Dolomite's liquidity pools, effectively locking funds for other depositors and creating potential exposure to bad debt should the value of the WLFI collateral collapse.
(Source：CoinDesk)