WLFI, the token of the World Liberty Financial platform backed by Donald Trump, fell to an all-time low of $0.07714 on Saturday, marking an 83% decline from its peak of $0.46 in September. The drop follows revelations that the platform used approximately 5 billion WLFI tokens as collateral to secure a $75 million loan on the Dolomite decentralized lending platform. This has raised concerns among decentralized finance (DeFi) analysts about potential risks for lenders if WLFI's price continues to decline, as it could lead to a forced liquidation of assets. World Liberty Financial, however, defended its actions, stating that its positions remain well above liquidation thresholds and that the strategy is intended to generate yield for users. The project plans to introduce a governance proposal to implement a phased unlock schedule for WLFI tokens held by early retail buyers, replacing immediate access with a long-term vesting plan subject to community approval.