Borrowing on Dolomite has long relied on a dual‑slope interest‑rate curve. One line governs rates from 0% utilization up to the optimal utilization point, usually 90% — often called the kink — while a steeper line covers the 90%–100% utilization range.
Our new model keeps this 90% kink intact while softening what happens after it. Rates still rise once the market tightens, just less aggressively than before. This new gentler increase is due to a lowered cap on the borrow APR at max utilization.
Stablecoins and majors such as BTC and ETH now have a lower maximum borrow APR at 100% utilization. Meaning costs stay lower for longer, and even at full utilization they can’t explode the way they used to.
What Changed and Why It Matters
Until now, the post‑kink line could climb quickly enough to spook borrowers, force hasty repayments, or trigger liquidations during volatile markets. By flattening that slope and lowering our rate cap, we make three things possible:
Cheaper average borrowing. Most assets will sit somewhere between 70% and 95% utilization. A gentler climb in that range translates directly into lower costs for you.
More forgiving extremes. Even if utilization hits 100%, the lower caps mean your debt positions don’t increase as aggressively over time.
Greater market stability. Smaller, smoother increases to the rate reduce the chance of a chain‑reaction sell‑off when markets get stressed.
Who Benefits
Borrowers and Strategy Builders: Lower average APR and a lower ceiling protect profit margins and reduce liquidation risk.
Liquidity Providers: More predictable borrowing demand tends to keep utilization — and yields — within a healthy, steady band.
The Dolomite Ecosystem: Less rate volatility encourages bigger, longer‑lived positions, increasing overall TVL and reinforcing Dolomite’s reputation for capital efficiency.
Additional Changes
In addition to adjusting the hard caps at 100% utilization on specific assets, we’ve made changes to other set points, including the rates charged at the kink for a number of assets. These adjustments vary by asset and are designed to fine-tune incentives, making borrowing more efficient across the board.
In Conclusion
Borrowing on Dolomite just became more efficient and easier to predict. Whether you’re looping yield strategies, hedging exposure, or simply supplying liquidity, the path forward is smoother than ever.
