In the DeFi world, 'capital efficiency' has always been the core goal pursued by both users and developers. Whether it is lending or trading, how to maximize the value of the assets in hand has always been an unavoidable topic. In the Arbitrum ecosystem, @Dolomite_io the emergence of io seems to provide a better solution to this problem. As a comprehensive protocol that integrates lending, margin trading, and liquidity provision, it has not only entered the top five projects in Arbitrum with a TVL of over 600 million dollars, but also breaks the limitations of traditional DeFi protocols with its unique 'dynamic collateral' mechanism.
In traditional lending protocols, when users borrow other assets using their assets as collateral, the collateral is effectively 'frozen'—it cannot be used for staking or participating in protocol voting, and the added value of the assets is completely idle. This is undoubtedly a waste of resources for users pursuing maximized yields. Dolomite's dynamic collateral mechanism precisely addresses this pain point: when users use assets as collateral, they can still retain their inherent rights, such as using the collateralized tokens to participate in staking for earnings or influencing protocol development through DAO voting. This model of 'one asset, multiple uses' allows for a qualitative leap in capital efficiency. For example, suppose a user holds governance tokens for a certain project and wants to obtain USDC for short-term trading through borrowing without giving up the voting rights and staking rewards of that token. This is nearly impossible in traditional protocols, but on Dolomite, both can be accommodated simultaneously.
In addition to the innovation of core mechanisms, Dolomite's technical architecture also lays a solid foundation for its stability and scalability. It employs a two-layer modular system—immutable core and variable modules, perfectly balancing security and flexibility. The immutable core has undergone professional auditing to ensure the underlying security of the protocol, avoiding risks that may arise from code changes; while the variable modules allow the team to upgrade functionalities and add new modules at any time. The launch of features such as seamless transfers and free flash loans is all achieved through variable modules. This architectural design allows Dolomite to withstand external risks while quickly responding to market demands, maintaining flexibility in the intense DeFi competition.
What is more worth noting is that Dolomite's inclusivity of assets far exceeds that of similar protocols. It currently supports over 1,000 unique assets, including mainstream assets like ETH and USDC, as well as many long-tail tokens and innovative assets, such as the USD1 stablecoin issued by World Liberty Financial and custodied by BitGo. This extensive asset support allows users with different needs to find suitable services on the platform—market makers can use diverse assets to provide liquidity, hedge funds can construct complex strategies through niche assets, and ordinary users can easily participate in lending and trading of various assets.
In terms of token economics, DOLO, as Dolomite's native token, has a distribution mechanism that fully reflects its emphasis on users. 50% of the tokens are allocated to users, with 20% for airdrops and 30% for liquidity incentives. This 'user-oriented' design allows early participants and long-term supporters to share in the dividends of the protocol's development. Currently, DOLO is listed on major exchanges such as Kraken, Kucoin, and Bybit, with a market cap of approximately $85.49 million and an FDV of $250 million. With the continuous growth of the protocol's TVL and ongoing feature enhancements, its potential value is worth anticipating.
Since its establishment in 2018, Dolomite has grown from a niche protocol to an important pillar of the Arbitrum ecosystem. The $2.5 million seed round financing completed in May 2023 has also attracted the attention of well-known institutions such as Draper Goren Holm, NGC Ventures, and Coinbase Ventures. Now, it not only operates stably on Arbitrum but has also expanded to Ethereum Mainnet and Berachain, with plans to launch on platforms like Botanix Labs in the future. For DeFi users pursuing efficient asset utilization, Dolomite is undoubtedly a choice worth exploring in depth.