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World Liberty addresses risk concerns over 5B WLFI collateral position on Dolomite

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World Liberty addresses risk concerns over 5B WLFI collateral position on Dolomite

World Liberty Financial has dismissed market warnings regarding its borrowing activity on the lending platform Dolomite, labeling concerns over its debt health as “FUD.”

Summary

  • On-chain data shows World Liberty Financial deposited 5 billion WLFI tokens on Dolomite to borrow $75 million in stablecoins shortly before a major U.S. foreign policy announcement.
  • World Liberty Financial dismissed liquidation concerns as FUD.

On-chain data from Arkham reveals that a wallet belonging to the Trump family-backed project deposited approximately 5 billion WLFI tokens into the protocol to secure a $75 million loan in USDC and USD1 stablecoins. 

Subsequently, the World Liberty wallet transferred over $40 million to Coinbase Prime just hours after Trump announced a U.S.-Iran ceasefire.

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Dolomite was co-founded by Corey Caplan, an advisor to World Liberty; as such, the high concentration of WLFI on the platform has triggered intense scrutiny from DeFi analysts.

Currently, WLFI tokens represent $428.9 million of the $825.4 million in total assets supplied to Dolomite. This means the project’s native token now accounts for more than half of the protocol’s total liquidity, creating what researchers describe as a significant concentration risk. 

DeFi analysts on X warned that if WLFI’s price hits liquidation levels, the lack of market depth could result in massive bad debt for the protocol’s other lenders.

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“If that WLFI collateral position ever gets close to liquidation, it’s basically unliquidatable without major losses for lenders,” wrote analyst EthanDeFi.

He pointed to the token’s low liquidity relative to its $10 billion valuation, advising users to withdraw stablecoins from any pools that accept WLFI as collateral.

In a series of posts on Thursday, World Liberty countered that its presence as an “anchor borrower” actually helps the platform by providing higher yields for other participants. 

The team maintained that they have ample resources to defend their position, noting they have repurchased 435 million tokens over the last six months to support the ecosystem.

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“We are nowhere near liquidation — and frankly, even if markets moved dramatically against us, we’d simply supply more collateral,” the team stated. 

“That’s not a risk. That’s how this works.”

Despite these assurances, WLFI’s price fell 5.6% to $0.86 as the controversy spread, bringing its total decline over the past week to 14%. 

The project is now looking toward a governance vote scheduled for next week to address a long-awaited token unlock for early retail buyers. This plan will involve a structured, phased vesting schedule rather than an immediate release of all tokens.

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The team remains firm that the protocol is designed for long-term growth rather than short-term speculation. 

“The critics are looking at the wrong thing,” World Liberty added. “We’re building something that compounds.”

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Crypto World

CoreWeave signs multi-year Anthropic deal as AI demand lifts cloud business

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Source: Yahoo Finance

CoreWeave has signed a multi-year agreement with Anthropic to support workloads for the Claude family of AI models. 

Summary

  • CoreWeave signed a multi-year Anthropic agreement to support Claude AI workloads across its data centers.
  • The company said it now serves nine major developers of large language models.
  • AI demand is drawing miners away as lower margins pressure traditional Bitcoin mining operations worldwide.

The deal adds another major customer to CoreWeave’s cloud business as the company expands its role in artificial intelligence infrastructure.

CoreWeave said Anthropic will use its cloud data centers to run AI workloads tied to Claude models. The company added that the agreement will roll out in phases and may grow over time as demand increases.

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The announcement gave investors a fresh look at CoreWeave’s position in the AI sector. The company said the new agreement means it now serves nine of the 10 major developers of large language models.

CoreWeave shares rose more than 10% on Friday after the company announced the deal. The stock traded at around $102 at press time, showing a strong reaction from investors to the latest customer win.

Source: Yahoo Finance
Source: Yahoo Finance

The agreement came shortly after CoreWeave completed an $8.5 billion capital raise led by Meta Platforms. The financing was tied to deployed computing capacity and expected cash flows rather than graphics processing unit hardware, marking a different structure from older crypto mining funding models.

Moreover, CoreWeave shifted away from crypto mining and rebranded as an AI infrastructure company in 2019. The change came after mining economics weakened following the 2018 crypto market downturn.

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That transition has become more relevant as more mining firms look at AI workloads for new revenue. Rising energy costs, lower block rewards, and weaker crypto prices have continued to pressure Bitcoin miners.

AI demand draws attention from miners

CoinShares said up to 20% of Bitcoin miners are now unprofitable in the current market. The report shows how tighter margins have made traditional mining harder to sustain for many operators.

Some firms are now looking to AI computing as a stronger use of power and hardware. Market analyst Ran Neuner noted

”Both industries compete for the same thing: electricity, and right now, AI is willing to pay much more for it.” 

His comment reflects a wider shift as miners weigh whether AI can offer steadier returns than crypto mining.

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Arizona Judge Blocks Gambling Enforcement Against Kalshi Contracts

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Arizona Judge Blocks Gambling Enforcement Against Kalshi Contracts

A federal judge in Arizona has temporarily barred state officials from enforcing gambling laws against Kalshi, siding with the CFTC.

A federal judge in Arizona has temporarily barred state officials from enforcing gambling laws against Kalshi, siding with US regulators in a growing dispute over how event-based trading products should be classified.

In an order issued on Friday, Judge Michael Liburdi of the US District Court for the District of Arizona granted a request from the Commodity Futures Trading Commission (CFTC) and the federal government to halt any state-level action targeting contracts listed on CFTC-regulated markets .

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The ruling centers on whether Kalshi’s “event contracts” fall under federal derivatives law or state gambling statutes. Last month, Arizona authorities sought to pursue enforcement against Kalshi under local gambling rules, but the CFTC asked a court order on Wednesday to stop the action.

The court said that the CFTC is likely to succeed in arguing that such contracts qualify as “swaps” under the Commodity Exchange Act, placing them within federal jurisdiction. The law grants the agency exclusive authority over swaps traded on designated contract markets.

Related: Prediction market users await Artemis II mission splashdown

Court halts Arizona enforcement against Kalshi

As part of the decision, Arizona officials are temporarily prohibited from initiating or continuing civil or criminal enforcement tied to Kalshi’s event contracts on regulated exchanges .

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The restraining order will remain in effect until April 24, while the court considers whether to issue a longer-term preliminary injunction.

Kalshi notional volume. Source: Kalshidata

The case adds to a broader debate over prediction markets in the United States, particularly as regulators and states clash over whether such products resemble financial instruments or online betting. Last month, Utah lawmakers also passed a bill targeting Kalshi and Polymarket that classifies proposition-style bets on in-game events as gambling, aiming to block such offerings in the state.

Related: US appeals court upholds preventing New Jersey enforcement against Kalshi

Nevada judge extends ban on Kalshi

Last week, a Nevada judge extended a ban preventing Kalshi from offering event-based contracts in the state, siding with regulators who argue the products amount to unlicensed gambling.

The court found that the platform’s offerings closely resemble traditional sports betting. The judge said there is no meaningful distinction between placing a wager through a sportsbook and buying a contract tied to an event outcome, concluding that such activity falls under Nevada’s gaming laws.

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