World Liberty Finance has expanded borrowing on Dolomite to near its WLFI collateral cap, with roughly 3 billion WLFI backing about $40.7 million in stablecoins.
Chaos Labs said the position now accounts for 82.7% of Dolomite’s TVL and 85.3% of total borrowing, leaving activity heavily concentrated.
World Liberty Finance has pushed its Dolomite borrowing position close to the protocol’s limits, raising fresh questions about concentration risk, collateral quality and how much stress the system could absorb if conditions turn.
According to Chaos Labs, WLFI has rapidly expanded its use of the lending platform through two multisigs, bringing collateral usage near the protocol’s 5.1 billion WLFI cap. Roughly 3 billion WLFI now backs around $40.7 million in borrowed stablecoins, most of it in USD1, with the setup relying in part on a USD1-USDC leverage loop.
A single borrower now dominates Dolomite activity
That is the part that stands out. Chaos Labs said World Liberty’s activit
