After its $75 million DeFi loan held up user liquidity, Trump-affiliated World Liberty Financial lost a significant supporter when Justin Sun publicly criticised the project’s treatment of investors.
Sun added, “Every action taken by the WLFI team to extract fees from users and to treat the crypto community as a personal ATM is illegitimate.”
The criticism came days after World Liberty Financial borrowed around $75 million in stablecoins and deposited 5 billion WLFI tokens as security on the DeFi lending platform Dolomite.
Dolomite still dominates the deposit, which constitutes most of the protocol’s approximately $794 million in total supply liquidity.
The USD1 pool reached 100% utilisation at its peak earlier this week, momentarily preventing regular stablecoin depositors from accessing their money. With around $158 million borrowed against $193 million supplied, the pool’s utilisation had fallen to about 82% as of Sunday.
Onchain analysts have characterised Dolomite co-founder Corey Caplan’s dual role as an advisor to World Liberty Financial as functionally equivalent to CTO. Dolomite increased its WLFI supply cap to 5.1 billion tokens in order to accept WLFI’s deposit.
Source: X.com
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