As a user-centric observer of DeFi, I think that trends in user growth and protocol stickiness, in addition to capital size and token mechanisms, will determine Dolomite's long-term worth. The viability of the protocol's income and value logic depends on users developing solid usage patterns on the site.

1. The correlation between the number of active users and the size of capital

The Total Value Locked (TVL) of Dolomite is around 347 million USD, with a loan amount of 122 million USD, according to on-chain statistics. This is supported by a community of users who are actively participating in collateralized lending and making good use of the margin function to maximize capital efficiency. The fact that the protocol made over $200,000 in income and approximately $948,000 in fees in the last 30 days suggests that the trading behavior of users is real and long-lasting, rather being motivated by temporary gains.

2. The motivating factor behind DRIP incentives to increase user base

The introduction of the Arbitrum DRIP S1 program is a major factor in the increase of Dolomite's user base. The intended purpose of the 24 million ARB budget is to promote the cyclical operation of yield assets like weETH, rsETH, and syrupUSDC. The budget will be delivered in stages. Users can receive extra incentive returns when utilizing the protocol thanks to Dolomite's selection for this program. This does double duty by enticing both new and old users to give it a go. Certainly, DRIP is the primary driver of the protocol's user growth in the near term.

Stickiness of users and asset design

In my experience, the long-tail asset collateral design in Dolomite really enhances user stickiness. Users can still keep their staking and governance incentives after depositing assets, which lowers the opportunity cost of quitting. By depositing LSD-type assets, for instance, I may get borrowing capacity in addition to staking incentives; this two-pronged incentive encourages users to retain their monies within the system for the duration.

4. Why multi-chain deployment is crucial for user growth

Botanix (BTC L2), Berachain, and the Ethereum mainnet are now part of Dolomite's reach. This lessens reliance on any one ecosystem while simultaneously increasing the pool of possible users. This improves the overall simplicity of capital management for customers by preserving asset usage across multiple chains. Dolomite is anticipated to emerge as a fundamental resource for managing cross-chain capital efficiency as the multi-chain ecosystem develops.

5. Possible obstacles

I see a number of hazards, even while user growth statistics is positive: 1. Reliance on incentives: The product quality of the protocol determines whether customers will remain once DRIP finishes; 2. Difficulty with operations: New users still encounter some obstacles with multi-chain interactions; 3. Liquidation risk: While long-tail asset collateral makes things more appealing, changes in pricing might impact how users perceive the product.

6. Finally

Dolomite has demonstrated a pattern of increasing stickiness and user growth based on on-chain statistics and user activity. Its multi-chain architecture, long-tail asset collateral, and DRIP incentives bring in an increasing number of active users. Dolomite has the potential to become more than just a lending platform—it may become a pivotal point for multi-chain asset management if it can keep users' long-term usage patterns beyond incentives and maximize risk control and interaction experience going forward.


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