World Liberty Financial denies liquidation risk, plans token unlock proposal

World Liberty Financial (WLFI) has denied recent market FUD (fear, uncertainty, and doubt) surrounding its loan positions. In a post on X, the company stated that while it borrows stablecoins against collateral as a major supplier and borrower on the WLFI market, there is no risk of liquidation. It added that it can supply additional collateral if necessary and is generating high stablecoin yields. Over the past six months, the firm has also conducted a buyback of approximately 435 million WLFI at an average price of $0.1507, totaling $65.58 million. Its annualized return on USD1 is around $160 million, and it has introduced a gas-free transfer feature. World Liberty Financial also noted it plans to soon release a governance proposal to unlock tokens for early investors. The statement addresses market rumors that the company had borrowed over $50 million in USD1 from its ecosystem lending platform, Dolomite, causing liquidity on the platform to turn negative.