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The family-related Trump token DeFi platform World Liberty Financial ($WLFI) has hit new local lows amid increasing criticism of the lending model used by the project team.
The token's price dropped after details of borrowing operations were disclosed, during which the project's treasury raised about $75 million in stablecoins ( including its own — USD1).
The collateral consisted of 5 billion $WLFI controlled by the team.
Following the news, the asset's price fell more than 10%, and the market capitalization decreased by hundreds of millions of dollars.