World Liberty Financial has repaid a total of $25 million in USDS over the past two days, even as its token continues to decline amid ongoing scrutiny of its borrowing strategy.
In a post on X, the project confirmed it repaid $15 million two days ago, followed by an additional $10 million today.
Repayments follow backlash over borrowing and liquidity
The move comes after mounting criticism of WLFI’s activity on its own lending platform, where it emerged as one of the largest borrowers.
As previously reported, the project deposited billions of WLFI tokens as collateral and borrowed over $75 million in stablecoins. This move 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 and broader contagion risks if positions were not managed carefully.
WLFI dismissed those concerns, stating it was “nowhere near liquidation” and could add more collateral if needed.
Price continues to weaken despite repayments
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 marked by lower highs and sustained selling pressure.
Momentum indicators point to weakness. The Relative Strength Index [RSI] has fallen to around 25, placing the asset in deeply oversold territory. While this can signal the potential for a short-term bounce, it also reflects the intensity of recent selling.
Notably, WLFI’s decline has come even as the broader crypto market shows signs of stabilization, highlighting a divergence between the token’s sentiment and the broader market’s.
Market signals unresolved concerns
The disconnect between WLFI’s repayments and its price action suggests that underlying concerns remain.
While reducing outstanding debt may ease immediate liquidity pressure, it does not fully address questions about the project’s borrowing strategy, reliance on its own token as collateral, and potential risks associated with future unlocks.
For now, the market is pricing in continued uncertainty rather than treating the repayments as a definitive resolution.
Final Summary
- WLFI has repaid $25M in stablecoins following backlash over its borrowing activity, easing some immediate pressure.
- However, the token continues to decline, signaling that broader concerns around risk and liquidity remain unresolved.
