World Liberty Financial Borrowed Millions Via Advisor’s Protocol

TLDR

• World Liberty Financial deposited USD1 on Dolomite and borrowed 11.4 million USDC on Feb. 8.
• Arkham data showed the borrowed USDC moved to a Coinbase Prime deposit address within minutes.
• WLFI later posted 1.99 billion WLFI tokens on Dolomite and received about $31.4 million in stablecoins.
• Corey Caplan co-founded Dolomite and also serves as an advisor to World Liberty Financial.
• In April, WLFI sent 3 billion more WLFI tokens to a Gnosis Safe proxy wallet at 0x44a681DD.

World Liberty Financial (WLFI) used Dolomite to borrow millions after posting its own tokens as collateral. The transactions involved a protocol co-founded by a company advisor. Onchain records traced transfers to Coinbase Prime.

World Liberty Financial Moved Treasury Assets Through Dolomite

On Feb. 8, WLFI’s treasury deposited 14 million USD1 into Dolomite. It then borrowed 11.4 million USDC against that collateral within minutes.

Arkham data then showed 11.45 million USDC moving to a Coinbase Prime deposit address. Two days later, the treasury sent 12.5 million USD1 to another Coinbase Prime address.

That USD1 transfer did not come from a Dolomite loan. Instead, World Liberty Financial moved its stablecoin directly from treasury holdings to the exchange through a separate institutional off-ramp.

On Feb. 20, the treasury posted 890 million WLFI on Dolomite. It borrowed 20 million USD1 against that position twelve days after the first move.

On March 24, the treasury added 1.1 billion WLFI as collateral. Dolomite then extended more borrowing, bringing stablecoin proceeds from both episodes to about $31.4 million.

Dolomite co-founder Corey Caplan serves as an advisor to World Liberty Financial. That link placed the borrowing activity inside a protocol tied to a company insider through its advisory structure.

World Liberty Financial now leads Dolomite’s publicly supplied assets list with $458.9 million. The position equals about 55% of the protocol’s $835.7 million total supply liquidity.

USD1 and WLFI Activity Expanded in April

USD1 ranks second on Dolomite with $180 million supplied and $167.5 million borrowed. That left the pool with a utilization ratio near 93% during the period reviewed.

Dolomite listed a 16.24% supply rate and a 9.18% borrow rate for USD1. Those figures matched the pool’s concentrated borrowing activity during the period.

Records show depositors supplied almost all available USD1 on Dolomite while borrowing stayed high. The pool, therefore, held limited room for immediate withdrawals at that time.

WLFI collateral inside Dolomite now totals 1.99 billion tokens from the two deposits. The token trades with thinner market depth than the pledged amount now visible on exchanges.

On April 2, the treasury sent 2 billion WLFI to a Gnosis Safe proxy wallet. Five days later, it transferred another 1 billion WLFI there.

The wallet used address 0x44a681DD in the April transfers. Onchain data has not shown a destination beyond that proxy structure so far publicly.

Those 3 billion WLFI tokens carry an estimated value of about $266 million at $0.0888 each. The transfers stand as the latest visible movement in the treasury trail to date.

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