In the rapidly evolving world of decentralized finance (DeFi), many protocols chase short-term attention with high-yield token emissions that burn out as quickly as they ignite. Dolomite takes a fundamentally different approach. Instead of fleeting hype, it has engineered a self-sustaining token ecosystem that prioritizes long-term growth, liquidity, and community commitment.
At the core of Dolomite’s strategy is a three-token model: DOLO, veDOLO, and oDOLO. Each token serves a unique purpose while creating a self-reinforcing economic loop. DOLO, the primary ERC-20 token, exists across multiple blockchains like Ethereum, Arbitrum, and Berachain, with Chainlink’s CCIP ensuring consistency across networks. It serves as the foundation for participation and value accumulation within the ecosystem.
veDOLO represents governance and loyalty. Users lock DOLO for a set period to earn veDOLO, gaining voting power and a share of the protocol’s revenue. Early unlocks carry penalties that are partially converted into oDOLO, recycling value and reinforcing ecosystem strength. This design ensures that governance power remains with committed participants rather than short-term speculators.
oDOLO incentivizes liquidity provision while discouraging rapid sell-offs. Liquidity providers must convert earned oDOLO into veDOLO by acquiring DOLO from the market, creating a continuous cycle that drives demand and supports token value. The system rewards long-term commitment with discounts proportional to lockup durations, strengthening loyalty and governance participation.
Dolomite’s model aligns incentives across all participants: traders, liquidity providers, and token holders. By integrating rewards with protocol health, it transforms speculative activity into sustained engagement, ensuring liquidity remains sticky and the token economy resilient. In a DeFi landscape often dominated by ephemeral gains, Dolomite’s three-token framework establishes a durable, thriving ecosystem built for the long haul.