Criticism is focused on the deal structure. Commentators note that the project used billions of tokens as collateral, which allowed attracting liquidity without obtaining additional capital from outside sources. This model is called "cyclical financing" because it essentially involves loans secured by an asset controlled by the borrower themselves. The company used the lending DeFi protocol Dolomite, one of whose co-founders is Corey Kaplan. The entrepreneur is also listed as an advisor to World Liberty Financial. Dolomite is not among the leaders in the decentralized lending segment, ranking 19th by total locked assets — $147.6 million. In comparison, the top two platforms, Aave and Morpho, hold $25.3 billion and $7.5 billion respectively (DeFiLlama). Users have pointed out the risks of potential conflicts of interest and liquidity concentration $WLFI in a relatively small protocol. The latter means a critically high dependence of the lender on a single borrower. Commentators noted the limited market depth of the token, with a total capitalization of $2.5 billion. The need to liquidate even 5% of the total volume could catastrophically crash the asset's price, one critic emphasized.