World Liberty Financial Drains Its Own Pool, But Calls It “By Design”
BeInCrypto
World Liberty Financial defends its massive borrowing on the Dolomite protocol, claiming its role as an anchor borrower is essential for generating platform yield.Summary
World Liberty Financial (WLFI) is facing criticism for utilizing 55% of the total value locked in the Dolomite protocol to borrow roughly $75 million in stablecoins. While depositors face difficulties withdrawing funds due to high pool utilization exceeding 93%, the project asserts this strategy is "by design." WLFI claims that acting as the anchor borrower helps generate necessary yields to make the platform competitive, while also announcing upcoming governance proposals to unlock tokens for early investors.
(Source：BeInCrypto)