World Liberty Financial (WLFI) used 5 billion native tokens as collateral for a new loan.
The Trump-linked project borrowed approximately $75 million in stablecoins through the decentralized platform Dolomite.
A Dolomite co-founder serves as an adviser to WLFI, raising potential conflict-of-interest concerns.
The WLFI token price fell nearly 10% to an all-time low following the borrowing operation.
Lending pool utilization on Dolomite exceeded 93%, effectively trapping other users' deposits.
On-chain records show $40 million of the borrowed funds were transferred to Coinbase Prime.