Dolomite is a DeFi platform that lets you lend, borrow, trade, and earn in one place. What makes it stand out is that it supports over 1,000 different assets – way more than most platforms. This means you’re not limited to just the top coins like ETH, BTC, or stablecoins. Even smaller, long-tail tokens can be used to earn yield, borrow against, or trade.
Why Dolomite is Different
Most lending apps like Aave or Compound only let you use a few dozen assets. Dolomite built its system in a way that allows it to support thousands of tokens without losing security. This is huge for people who hold smaller tokens and want to do more with them instead of just letting them sit idle.
On @Dolomite you don’t lose your “DeFi rights” either. For example, if your token normally earns staking rewards or has governance power, you can still keep those benefits even while lending or borrowing with it.
What You Can Do on Dolomite
Lend & Earn – Deposit your tokens and earn interest.
Borrow Safely – Use your assets as collateral to borrow other tokens. Each loan is isolated, so risk is limited to that one position.
Trade & Margin – Trade directly on Dolomite without moving funds to another app. You can even use margin to increase exposure.
Loop Strategies – Use advanced tools like the “Strategies Hub” to automate yield farming or leverage loops in just a few clicks.
Swap Inside Loans – If you need to change your collateral or borrow a different token, you can swap directly inside the app.
How Dolomite Works Behind the Scenes
The platform uses a system called “virtual liquidity.” In simple words, this means one pool of assets can be used for many things at once – lending, borrowing, trading, and more. That makes it more capital efficient, so users can earn more with less idle capital sitting around.
It also combines a DEX (decentralized exchange) with a lending market. So instead of using multiple platforms to trade and borrow, you do everything in one smooth place.
Token System
Dolomite has its own tokens that power the ecosystem:
DOLO – the main token.
veDOLO – locked DOLO for voting and boosted rewards.
oDOLO – a reward token earned by taking part in the platform.
These tokens are used for governance, rewards, and incentives for users who support the system.
Benefits in Simple Words
✅ You can earn on many more tokens than other lending apps.
✅ Everything (lending, borrowing, trading) happens in one place.
✅ Your assets are used more efficiently, giving you better returns.
✅ Isolated positions mean you don’t lose everything if one loan goes bad.
Risks to Remember
Smart contract risk – like all DeFi apps, bugs or hacks are possible.
Volatile assets – smaller tokens can swing in price, which might trigger liquidations.
Oracle risk – prices for thousands of tokens depend on oracles, so if one fails it could affect loans.
Changing rewards – token incentives (like DOLO rewards) can change based on governance.
Final Thoughts
Dolomite is trying to push DeFi forward by opening lending and trading to thousands of assets, not just the big ones. It gives more opportunities, more tools, and a smoother experience for active DeFi users. But, as with any DeFi protocol, it’s smart to start small, test it out, and only risk what you can afford to lose.
