$458M in WLFI collateral backing $75M in borrows looks overcollateralized until you check the depth chart — that position is 55% of Dolomite's entire TVL with near-zero secondary liquidity. Any liquidation cascade would vaporize token price before the collateral unwinds, and depositors can't even exit because pool utilization already hit 100%. Corey Caplan co-founded Dolomite and advises WLFI — a related-party transaction that TradFi would never let fly without independent board approval.

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