The Trump family-backed crypto project World Liberty Financial (WLFI) has repaid $25 million in debt, temporarily easing pressure on the Dolomite lending pool. However, the project still carries approximately $162 million in borrowings, and the token price continues to fall, leaving investor concerns unresolved.
Debt Repayment Details
According to monitoring data, WLFI repaid $15 million and $10 million in USD1 on April 11. Dolomite had been facing tight USD1 liquidity; the repayment pushed borrowable USD1 back to about $35 million and lowered the annualized deposit rate to 10.43%. This rate remains higher than competing stablecoins on the same platform: USDC at 9.07% and USDT at 7.74%.
Despite the partial repayment, WLFI still owes roughly $162 million on Dolomite, including $152 million in USD1 and $10.31 million in USDC. The borrowings are backed by 4.99 billion WLFI tokens valued at nearly $402 million. The project claims there is no imminent liquidation risk and can post additional collateral if needed.
Market Concerns and Token Performance
The core worry is concentration risk: billions of WLFI tokens used as collateral to borrow stablecoins. If the token price continues to decline, it could trigger bad debt. WLFI token has dropped over 74% from its launch high, now trading at $0.08, down 7% in 24 hours. Additionally, Justin Sun-linked frozen holdings lost about $11 million in value in a single day.
To shift the narrative, the project highlighted that USD1 is generating an annualized revenue pace of $159.5 million and it bought back 435.3 million tokens for $65.58 million over six months. WLFI is also proposing a governance vote for phased token unlocks for early retail holders, avoiding a one-time dump. USD1 recently added gasless transfers, AI payment support, and stronger compliance controls.
Conclusion
The Trump WLFI token update signals short-term relief but not closure. While immediate pressure on Dolomite has eased, investors will watch debt levels, the unlock vote, and whether trust can be restored amid broader Trump crypto news.