World Liberty Financial has repaid $25 million in stablecoins over two days after criticism of its borrowing practices. The project repaid $15 million followed by $10 million to reduce its outstanding debt. However, its WLFI token continues to decline, trading near $0.08 and signaling that investor concerns over its strategy and liquidity risks persist.
World Liberty Financial has repaid a total of $25 million in USDS over the past two days. The project confirmed in a post on X it repaid $15 million two days ago, followed by an additional $10 million today.
The move comes after mounting criticism of WLFI’s activity on its own lending platform. As previously reported, the project deposited billions of WLFI tokens as collateral and borrowed over $75 million in stablecoins.
This strategy drove lending yields higher but also strained liquidity. The situation sparked concerns among users who were unable to withdraw funds, with analysts warning of potential bad debt.
WLFI dismissed those concerns, stating it was “nowhere near liquidation” and could add more collateral if needed. Despite the repayments, WLFI’s market performance suggests that investor confidence has yet to recover.
The token is trading near $0.08, down over 7%, extending a broader downtrend. Momentum indicators point to weakness, with the Relative Strength Index falling to around 25.
WLFI’s decline has come even as the broader crypto market shows signs of stabilization. The disconnect between its repayments and its price action suggests that underlying concerns remain.
While reducing debt may ease immediate liquidity pressure, it does not fully address questions about the project’s borrowing strategy. For now, the market is pricing in continued uncertainty rather than treating the repayments as a definitive resolution.
